PMHC
Palestine Mortgage Insurance Company (PMIC) is a subsidiary of Palestine Mortgage Finance Company (PMFC), which insures loans granted by its partner banks against credit risk.
PMIC's capital is $5,000,000. Its primary objective is to provide insurance to banks in the event of a borrower's default. This reduces the credit risk of lending institutions, encouraging them to finance the housing sector. It is worth noting that the company provides insurance coverage of up to 70%—or any other coverage percentage agreed upon in advance—of the net loss value, which is the proceeds from the sale of the property less the outstanding loan balance, in addition to the costs associated with the execution of the property.
The company's activity focuses on insuring medium- and long-term mortgage loans against borrower defaults. The insurance is provided to encourage long-term mortgage lending by sharing risks with lending banks, thereby increasing competition among banks in the field of medium- and long-term lending.
The company is a wholly-owned subsidiary of Palestine Mortgage Finance Private Limited (the parent company), and its financial statements are consolidated with those of the company.