General refinancing principles
SRH refinances portfolios of real estate loans granted by banks and financial institutions for the purpose of financing real estate products in exchange for guarantees deemed acceptable.
The real estate portfolio must be replenished as the original loans are amortised or repaid in advance.
Although the real estate receivables remain on the balance sheets of banks and financial institutions, in the case of refinancing with recourse, they are the property of SRH, which reserves the right to verify their physical existence at any time, either on site or on the basis of supporting documents.
Banks and financial institutions benefiting from refinancing operations are required to ensure regular payment of interest or principal, even in the event of temporary or permanent default by the borrower (this is, of course, refinancing with recourse).
Banks and financial institutions wishing to benefit from ‘non-recourse’ refinancing must sign a transfer agreement and a mortgage debt management agreement with SRH before the refinancing operation is implemented. The transfer to SRH of ownership of the transferred real estate debts is carried out in accordance with the legislation in force (the Securitisation Act).
The maximum repayment period for refinanced loans is set at 25 years.
General refinancing conditions
- Fulfil its obligations as defined in the mortgage debt refinancing agreement;
- Periodically forwarding the following documents to SRH as soon as they are approved by the Ordinary General Meeting of Shareholders: balance sheet, management report of the Board of Directors and auditors' report.
- Providing information, financial documents and other documents deemed useful for the purposes of SRH, in accordance with the mortgage loan refinancing agreement.
- Inform SRH of any factor that could hinder the execution of the clauses defined in the real estate loan refinancing agreement;
- Apply a weighted rate of at least 140% of the remaining term of the portfolio refinanced by SRH;
- Complete the template containing information on loans granted to households (the template is available at SRH).
Required guarantees
- Guarantees consist mainly of first mortgages on real estate or, failing that, other guarantees deemed acceptable;
- The mortgage must be legally registered with the competent land registry;
- The authorised intermediary must transfer the first mortgage to SRH in accordance with the legislation in force;
- The remaining value of the guarantee should not be less than 125% of the refinancing amount. Transferred mortgages may be valued by SRH or by an independent expert if circumstances so require;
- Furthermore, as a precautionary measure, the authorised intermediary must transfer additional collateral to the SRH at the end of each quarter if the value of the mortgage is less than 125%, in the form of bonds, treasury bills or financial securities.