JMRC provides middle and long-term finance for banks operating in the Kingdom through refinancing housing loans granted by these institutions to citizens at a percentage not exceeding (83%) of the outstanding balances of housing loans. JMRC’s policy has specified the principles and criteria that ought to be available in the borrowing financial institution and in the housing refinance loan.

To guarantee the loan obtained by the bank from the Company, the bank transfers first preferred property mortgages pertaining to the housing loans granted by it in favor of the Company at a percentage of not less than (120%) of the value of JMRC’s loan granted to the bank, provided that the housing loans granted by the bank shall not be under any installments due and that the bank undertakes to transfer alternative mortgage deeds throughout the life of JMRC’s loan to the bank.

Under JMRC’s credit policy the bank was also permitted to provide temporary guarantees until it can provide the Company with necessary property mortgages. The most important of such temporary guarantees are the Jordanian Government bonds or bonds guaranteed by it, treasury bills, JMRC’s Bonds. It is worth mentioning that JMRC grants its loans on the strength that the loan principal shall be repaid on its maturity date and payment of interest at the end of every (6) months until the expiry of its term. In special cases, JMRC grants housing refinance loans on the basis of settlement of the principal loan and loan interests periodically.

Loans granted by JMRC to banks for refinancing housing loans enable these banks to increase its participation in the housing finance market and minimize the risks of mismatching between the sources and uses of its funds and encourage competition among these banks, which would eventually be in the interest of citizens.

JMRC gets the necessary funds for its operations by issuing bonds in the local capital market through private or public subscription and in accordance to the Jordan Securities Commission regulations.