What changed
RBI issued a consolidated version of the Mortgage Guarantee Company (Reserve Bank) Guidelines, 2008, incorporating all amendments up to June 30, 2012. The updated notification replaces the original February 15, 2008 circular and is now the single reference document for mortgage guarantee companies.
What it means for you
Banks and housing finance companies dealing with mortgage guarantee firms now have a single, updated regulatory framework to refer to, reducing compliance ambiguity. The definitions and operational guidelines remain unchanged, but the consolidation ensures clarity and ease of access for all stakeholders.
What you must do
- Review the updated consolidated guidelines to ensure your mortgage guarantee counterparties comply with the latest version.
- Update internal compliance manuals and training materials to reference the June 30, 2012 consolidated notification.
- Verify that all mortgage guarantee agreements and processes align with the definitions and requirements in the updated guidelines.
Who it affects
Mortgage guarantee companies, Banks providing housing loans, Housing finance companies, Borrowers with housing loans covered by mortgage guarantees
Does this circular introduce any new requirements for mortgage guarantee companies?
No, this circular merely consolidates the existing 2008 guidelines as amended up to June 30, 2012. No new requirements are added.
What is the effective date of these updated guidelines?
The consolidated guidelines are effective from July 2, 2012, the date of this circular, but they reflect amendments already in place since the original 2008 guidelines.
Who is defined as a 'creditor institution' under these guidelines?
A creditor institution is defined as a bank or a housing finance company, as per the definitions in the guidelines.