News & EventsNews 2008

eT3 delivers EMRC first version of PML (Primary Mortgage Lender) & Collaterals Modules

EMRC Go Live for Loans and PML & Collateral Modules

     Finally, after several months of testing and requirements customization, the Egyptian Mortgage Refinance Company (EMRC) starts automation of the Loans and PML & Collaterals modules.eT3 signs contract with EMRC,  complete IS Modules and Architecture  


Loans  Module
     The Loans module  manages the loans issued by EMRC to the PML’s, and integrates to the existing GL  in the Oracle Financial system. The Loans module maintains records of loans  scheduled capital and interest payments and allocates received payments  following a user defined allocation sequence; it generates PML invoices  reflecting the outstanding loan payments due and the aging of accounts and  provides complete debtors management and accounting integrityThe Loans system diaries and alert the  treasury and corporate finance staff of business events such as pending  repayments due by PMLs and generates the appropriate notifications for PMLs.  It also provides cash flow forecasting to corporate finance and treasury  including loan obligations due by PML’s over the life of active loans
Integration with Oracle Financials General Ledger
     eT3  utilizes “Open  Interface” methodology provided by Oracle to import GL Transactions generated in  the Loans module into Oracle Financials GL Journal Entry tables. The same  methodology is used to integrate other locally developed modules such as Bonds
PML & Collaterals  Module
   PML (Primary Mortgage Lender) is the Bank or Financial  Company that provides Mortgage Loans to investors to own residential properties.  The system stores main PML information such as code, Arabic and English name,  abbreviation, Legal Entity, Tax #, PML branches information such as addresses,   telephones and Contacts information including names titles and e-mails   The system also stores PML Financial Statements for  review by EMRC   EMRC provides re-financing Loans to PMLs against PML  collaterals which are mainly the mortgage Portfolio. PMLs can also present other  Collaterals such as treasury Bills in addition to the Portfolio  The system loads the PML mortgage records which include  investor data, loan amounts and terms, failure conditions and building Property  information.  EMRC selects from PML presented mortgages automatically according  to pre-defined evaluation criteria such as maximum single loan amount (3 million  EGP), maximum installment to investor income (40%) and minimum outstanding loan  amount to property value (80%) ….etc.  And accordingly the mortgage is rejected,  pending or candidate. Manual selection can override automated selection  criteria. The system presents statistics and reports on selected mortgages such  as average life, total monthly installments …  Finally candidate loans are  accepted and submitted to a closed Portfolio.  

    PML Portfolio Monthly updates include regular Balance  Updates and irregular conditions such as investor death, complete pre-payment …  Mortgage replacement can take place for a closed portfolio to increase the  collateral value of the Portfolio.


    The PML MRSA (Master Refinance Service Agreement)  regulates loans (participation agreements) conditions and total amount for a set  period usually 3 years.