Business Model

KMRC mandate entails re-financing or purchasing eligible mortgage loans with recourse. KMRC will be extending credit to its borrowers secured by the Primary Mortgage Lenders’ (PML’s) mortgage loan portfolio meeting the KMRC eligibility Criteria. The Company will not acquire and hold mortgage loans in its books or assume direct credit risk on mortgage loans offered as collateral.

The PML shall register a pledge on the mortgage portfolio. The pledged loans will remain on the PML’s balance sheet. If a loan pledged to KMRC becomes non-performing, the PML shall replace it with a performing loan.

Step 1

The PML grants mortgage loan to borrowers as per the mortgage loan eligibility criteria.

Step 2

The PML assigns/pledges rights to the mortgage loan to KMRC

Step 3

KMRC extends a re-finance facility to the PML

Step 4

KMRC raises funds through issuance of term notes/bonds to Investors

Step 5

KMRC pledges PML Loans and collateral to Investors

Step 6

PML repays the re-finance facility

Step 7

KMRC repays the bonds issued to Investors