ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
32. Review and classification of loans
Edition: 2022-12-31 · In force
32. Review and classification of loans
(1)Every mortgage refinance company shall review, classify and appropriately make provisions for its loan portfolio at least once every three months.(2)Every mortgage refinance company shall classify loans and advances in the manner provided for by guidelines issued by the Bank.(3)Where a mortgage refinance company has granted multiple loans to a single borrower, and any one of such loans is non-performing, the mortgage refinance company shall evaluate every other loan to that borrower and place such loans on non-performing status accordingly.(4)Every mortgage refinance company shall classify a group loan as past due in its entirety, when any of the members of the group defaults and the amount due is not covered by the members of the group:Provided that if the amount due is guaranteed by the members of the group, only the portion in arrears shall be accounted for as past due and the group members shall pay up for the guarantee.(5)A mortgage refinance company that contravenes this regulation is liable to any of the sanctions provided under regulation 57.