The Jordan Mortgage Refinance Corporation (JMRC) is a public-private partnership (PPP) with credibility as a bond issuer. It was formed in 1997 as a result of the 1993 Country Economic Memorandum (CEM), which recommended removing privileges from the Housing Bank along with the establishment of a liquidity facility aimed at long-term finance provision. The creation of JMRC made mortgage loans more available by encouraging commercial banks to enter the market.
JMRC was formed with assistance from the World Bank Group, and was focused on establishing a secondary mortgage facility for banks engaged in residential mortgage financing. By lending banks term funds against pledged mortgage loans originated by the borrowing bank, JMRC reduced interest rates and asset-liability matching risks for the banks. By the end of the project with the World Bank, JMRC’s refinance operations made up over 30% of mortgage loans in the system eligible for refinancing, and as of 2015, JMRC continues to play an important role in the country’s mortgage market.
Source:
World Bank Group. (2016) World Bank Group Support for Housing Finance. International Bank for Reconstruction and Development / The World Bank.
Link: https://ieg.worldbankgroup.org/evaluations/world-bank-group-support-housing-finance