DNBS
No. 6625 /03.11.01/2006-07 April
2, 2007 Non-Banking
Financial Companies Dear
Sir, Union
Budget Speech for the year 2007-08
Regulations
for creation of mortgage guarantee companies Please
refer to Paragraph 90 of Union Budget Speech – 2007-2008 - Housing Loans (copy
of the paragraph enclosed as Annex 1). 2.
An Internal Group was constituted by the Reserve Bank to formulate regulatory
guidelines and to recommend a regulatory guidelines/framework for mortgage guarantee
companies. Accordingly, draft
guidelines is being put on the website for comments. 3.
Banks, NBFCs, members of public are requested to forward their comments and feedback
on the draft guidelines to the undersigned by close of business on Tuesday May
1, 2007. Yours
faithfully, (P.Krishnamurthy)
Chief
General Manager-in-Charge
Paragraph
90 of Union Budget Speech 2007-2008
Housing
Loans 90.
Our people want housing loans. Banks and housing finance companies that lend against
mortgages would have greater comfort if the mortgage can be guaranteed through
a three way contract among borrower, lender and guarantor. Regulations will be
put in place to allow the creation of mortgage guarantee companies. |