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|
|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.