Mortgage Guarantee Company Consulting Service Enterslice offers affordable and reliable Mortgage Guarantee consulting services, ensuring your business's financial health to meet your business objectives. Our professional will help you plan your financial budget forecast and offer valuable business insights to boost your growth in the ever-evolving landscape. Our advisory includes advanced business strategies to maximize your business's potential revenue growth. At Enterslice, our industry experts will conduct comprehensive assessment related to your business operations and provide assistance to mitigate business risk and ensure your business operation stay at the forefront in the competitive market. Our consulting services are efficient and cost-effective to lay out a success path parallel to your business. Understanding Mortgage Guarantee Company: Overview Just like home insurance protects its owners from loss arising from theft, fire, or other disasters, in the same way, a mortgage guarantee saves the banks and other financial institutions from damage sufferings to credit, especially from the borrower's end. A mortgage guarantee is a kind of tool that covers the home loan defaults. It allows banks, housing finance companies, and non-banking financial institutions to lower risks and enhance their business portfolios. A Mortgage company is a specialized financial firm engaged in the business of originating or funding mortgages for residential or commercial property. It is essentially a company that primarily transacts on the business to provide mortgage guarantees. A mortgage guarantee is a type of guarantee offered by a mortgage guarantee company for repayment of an outstanding housing loan and incurred interest upon it to the guaranteed amount to a creditor if the occurrence of default from the end of the borrower. A mortgage Guarantee Company is a type of non-banking finance company designed and defined as a fiscal relief weapon to the government focused on financial industry excellence. Understanding the increase in default and non-performing assets in financial institutions, especially in housing finance, the finance minister of India has introduced the meaning and idea of a Mortgage guarantee company to relieve the bad assets in banking and financial institutions. Mortgage Guarantee Company refers to the company incorporated under the Companies Act 2013 and licensed by the Reserve Bank of India to transact the business of mortgage guarantee. Our Consulting services are Shared for Mortgage Guarantee Startups. Cost Effective Our Experts offer cost-effective business solutions for newly entered Startups in the Mortgage Landscape. We will help them to manage their financial status. Expert Guidance Our esteemed Industry professionals have in-depth knowledge and understanding, capable of helping you make informed business decisions based on market trends and operational analytics. Flexibility Navigate our flexible and customized expert consulting deemed to comply with your business-specific needs and requirements. Our advice will help you secure your business objectives. Get expert assistance in Mortgage Guarantee Landscape Registration Process Enterslice will help you in the registration process with step-by-step guidance and proper assistance to secure a proper registration certificate for your mortgage guarantee business. Our effort will help you get a license with no hassle. Business Setup Services Our expert guidance and assistance on the key steps to set up business starts and ends, from market research to the implementation of innovative technological systems in your mortgage guarantee business. Customized Business Solutions We will analyze the industry data and develop business strategic road maps to help your business maximize its revenue and minimize operational risks. We will offer customized solutions to drive your business growth toward success. Regulatory Compliance Our support will help your business stay compliant with regulatory norms, enhance your business to minimize tax exposure and keep you focused on the risks presented by ever-evolving and increasingly complex taxation rules. Our Experts’ Role in Consulting For the Mortgage Guarantee Industry However, a mortgage guarantee company is more likely to grow rapidly in an ever-evolving landscape. Whether you are going to start or desire to expand your business operation, we will provide customized business solutions to expand your business, fuel your company's growth, and seize extreme business opportunities in the market. Our service in the Mortgage guarantee industry possibly thrives your business. It includes- 1. Mortgage Guarantee Company Compliance and Licensing Solutions Collaborate with our industry experts to understand the legal and regulatory framework that governs the mortgage guarantee sector within India. We are determined to help you with the licensing process and its compliance obligations and help you to take necessary and required business steps to make your business operation smooth and functioning as per the applicable laws. Our compliance and licensing services include- Registration Process/ Company Incorporation- Setting up entities across the country is a complex and time-consuming process due to the various jurisdictions and company types to choose the best one for business. To ensure such entities are incorporated in the right way, complying with the needs of business, our experts conduct pre-establishment analysis, supported by restructuring and tax experts if required, to avoid the unnecessary expenses of our esteemed clients. Our professional experts are skilled in the registration process and help you with step-by-step guidance and proper assistance to secure a proper registration certificate for your mortgage guarantee business. Our incorporation supports ensuring your company's secretarial risk and responsibility are managed continually and encourages you to keep your focus on business core operations. Compliance Obligations Our qualified experts are well-versed in the compliance obligations of a mortgage guarantee business. We will work together to make your business stay compliant with the regulatory obligation. We will help your business stay updated as per the regulatory compliance that governs the mortgage guarantee sector to stay away from penalties, legal complications, etc. Data Privacy and Security We are here to integrate innovative technologies that support your business operations and are more likely to implement the requisite cyber security measures into your business operations. We have a team of experienced technical experts who will conduct an internal assessment of your business's ongoing technologies and will work closely with you to develop strategies and implement advanced and innovative technologies to enhance the growth of your business. Utilizing our skills in your business, you are about to boost the productivity of your business operations and easily store and protect the sensitive data of your business operations. We will help your mortgage guarantee company comply with advanced technological business setup. 2. Mortgage Guarantee Business Setup Services Our industry experts helped several interested individuals and companies set up their start-ups of Mortgage Guarantees within India. We offer our expert guidance and assistance on the key steps involved, especially from market research to the implementation of innovative technological systems to set up your mortgage guarantee business. Our assistance includes- Market Research Our industry experts will work closely to conduct market research, help you identify your target audience, and analyze the industry trends to rank your business to stay at the forefront of the market. We will assess potential competition to build a concrete foundation to develop your mortgage guarantee business in the ever-evolving landscape. Building Networks We will help your business to establish and create partnerships with banks and other financial institutions. We are more likely to develop business strategies and plans to build your business network for the expansion of your business operations. 3. Risk Management and Due Diligence Our business experts help businesses to effectively manage the risk associated with the mortgage guarantee industry. We offer the best and most advanced business techniques that support implementing risk-mitigated business strategies to enhance your business operations more effectively and efficiently. 4. Financial Planning, Accounting, and business strategy Services We have a team of experts skilled in business financial planning, developing strategies, and providing customized solutions to your mortgage guarantee business to achieve its success. Our experts work closely to analyze your present financial information to identify the specific areas and business opportunities for growth and help you create a detailed, comprehensive layout parallel to your business objectives. Help you make an informed decision based on business data and encourage you to navigate the complexity of the financial landscape. Budget Forecasting Our industry experts are using advanced innovative technologies to support our clients with accurate revenue forecasts. Our experts also support businesses by offering them optimization services to enhance their operational revenue potential in the mortgage guarantee industry. Using our skills, you can easily boost your business to the next level, navigate the complexity of mortgage guarantee business, and get confidence in making informed business decisions related to business activities. Accounting and Bookkeeping We will help your business in implementing a robust and advanced accounting and bookkeeping system capable of tracking and monitoring your business financial transactions and cash flow and, maintaining accurate reporting, etc. This will help you in making an informed business decision based on your financial business database. Cash Flow Management Our mortgage guarantee experts will help your business to stay alive and solvent. We will manage and maintain your business cash flow using our professional intellects through forecasting and business planning models. We are more likely to work closely with our clients to manage their business cash flow most effectively and efficiently. Customized Financial Plans Our experienced professionals in the mortgage guarantee space analyze the industry data and develop strategic business roadmaps to help our esteemed clients maximize their business revenue and minimize operational risks. We are determined to develop financial plans as per the specific requirements of our client's businesses and drive their business growth toward success. Profits and Loss Reporting We are determined to provide reports based on your business's financial performance and will suggest business strategies for its growth. Our experts will work closely to analyze and monitor your business profits and loss statements to rectify the key trends and patterns accordingly. As we analyzed such business information, we possibly recommend your business about more effective business strategies to enhance your profits in terms of cost-cutting measures or hike in revenue opportunities. 5. Revenue Optimization Our experts also support businesses by offering them optimization services to enhance their operational revenue potential in the mortgage guarantee industry. We are providing customized business-based recommendations to ensure your business operations can secure sustainable revenue growth over time. Businesses can easily navigate the complexity of the mortgage guarantee industry and can boost their growth to the next level. 6. Platform Audit services Our expertise in audit platform services for mortgage guarantee companies ensures that such platform is secure, reliable, and compliant with the required industry norms and standards. Our experts assess your mortgage guarantee platform infrastructure, technology, and database privacy measures to recognize any vulnerabilities that arise within the business operation. We will offer recommendations for such improvements. We will analyze your mortgage guarantee business operational risk and implement the appropriate management practices parallel to the mortgage guarantee industry's best practices and regulatory compliance. We will conduct regular audits for platforms, which proactively helps in identifying and locating any potential weaknesses within your business operations. Our industry professional will help your business to attain a strong and secure impressive mortgage guarantee platform within the country. 7. Funding and Capital Management Our expert consultants are specialized and have expertise in funding and capital management for mortgage guarantee businesses. It does not matter to us whether you are seeking an investment purpose, either looking for business loans or require any further assistance on capital allocation. We are hereby to offer you proper guidance with professional assistance and support. Our team will evaluate your financial needs and goals accordingly and develop a comprehensive funding layout to manage your business capital effectively to boost your growth and secure long-term success in the mortgage guarantee landscape. 8. Digital Transformation Advisory Services We understand the valuable importance of implementing technology integration in the mortgage guarantee industry. Our experts can make you adapt the advanced technological tools or software in your business operations. We will analyze your business-specific requirements and objectives and recommend accordingly the best remedial solutions fit and proper for your business operations, more likely to integrate smartphone apps, the Internet of Things (IoT), Artificial Intelligence (AI), drones, Machine learning (ML) with many other technology developments to offer their customers and businesses a great experience in their financial services. We offer digital transformation advisory services to our client's businesses to improve their operations and make available advanced technology to enhance business. We help businesses adapt these advanced tools to make business operations efficient, reduce costs, and stay compliant in the ever-evolving landscape. 9. Data Analysis and Business Insights We have experts specialized in data analysis and insights, offering you valuable business insights and intelligence to enhance your confidence in making an informed decision. Our team is capable of utilizing advanced modern analytics tools to interpret your business's informative data and extract useful business insights to help you identify those specific areas needed for quick improvements to optimize your business operations. By collaborating with our experts, you can confidently make informed decisions to enhance your business profitability, reduce costs, and boost your business growth. 10. Legal, Tax, and Regulatory Advisory Services We offer legal, taxation, and regulatory-based advisory services to help businesses navigate the complex legal system and ensure your business stays compliant with the applicable regulatory framework. Our professional experts will support you in identifying potential tax savings opportunities and ensure your business compliance according to the taxation rules and regulations. We offer your business year-round tax planning strategies to minimize your business liabilities and maximize your deductions. Subsequently, our team will assist you with the filing process of tax returns accurately and timely to free your business from legal penalties or interest charges. Being your associate consulting partner, we offer your business legal and comprehensive business strategies to boost its growth in the mortgage guarantee space. Litigation support Lawsuits are complex, and working with the right litigation support, our professional experts can be transformative for your business and span several aspects of your lawsuit. Our experts track down the right information required to build your case arguments and prepare legal strategies. We will identify, preserve, collect, and review to produce relevant documents to support your legal issue. We will use innovative technology and draft the legal documents of your lawsuit to eliminate the drastic legal consequences. Our litigation support experts are specialized in the process, utilizing sophisticated AI solutions to expedite your legal matters. We are capable of discovering, data management, and legal research, along with other elements of the litigation process. Your business will recognize our significant efficiencies by sourcing our ligation supports. Tax advisory & Regulatory Compliance services As businesses grow more, the applicability of taxation rules and regulations will get more complex. Our industry experts offer tax advisory and regulatory compliance services for businesses in the mortgage guarantee space and enhance your businesses to minimize the tax exposure and key highlights on the risks presented by ever-evolving and increasing complex taxation rules. Our professional have in-depth knowledge and understanding of taxation regimes in India and around the world and offers timely information on taxation and independent business advice. We created plans to consider issues that arise within the specific type of tax or the implication of tax in any new project or any business change. Our industry experts work closely with dynamic companies and offer taxation advisory to develop a specific business structure, and our client-oriented taxation solutions are devoted to supporting our esteemed clients in understanding the complexity of taxation regimes and minimizing business taxation challenges. Our comprehensive support in taxation and regulatory compliance service includes – Direct Tax services Indirect Tax services Financial services Transaction Tax Preparation of tax returns Assessments of taxation liabilities Regulatory licensing Regulatory compliance RBI compliance, etc. Financial Inclusion: Mortgage Guarantee Company ensure low risks mortgage loans for individual with low credit score Suppose two borrowers with the same age, income profile, and credit score made an application for a home loan. One of the borrowers was granted a loan with a 20-year tenure with an interest of 8.25% and the same rate of interest offered by the bank to the borrower with a high credit score and sanctioned with a low loan amount with a high rate of interest. The borrower is required to furnish more documentary evidence to show his creditworthiness. Moreover, the same situation is faced by borrowers with no regular salaried incomes. It became hard for bank and mortgage financial companies to assess their repayment capability. Such customers find themselves out from the home loan market and prefer to take loans from those institutions that charge high rates of interest. Globally, mortgage guarantee companies work around these kinds of problems. The mortgage guarantee concept gained traction in India as the mortgage guarantee corporation associates work along with the banks and mortgage financial companies to ensure the risk of lending could get reduced to certain consumers. Within the last decades, the Mortgage guarantee companies offered INR 15,400 crore of home loans, which has benefited more than 85100 borrowers. It is more likely to be accepted that the scale of mortgage guarantee companies' operations will grow rapidly with plans to guarantee INR 10,000 crores worth of home loans in the next financial year, How Mortgage Guarantee Company Works? At the time of applying for a mortgage loan, the borrower who does not exist in the ambit of a bank or non-banking financial company, then he or she may be given an option where a small fee is required to be paid for the loan and granted with a higher loan amount for a long tenure. The borrower may pay the loan fees of 0.25% in addition to the rate of interest. Suppose a normal borrower received a loan at the rate of 8.5 %; then such a borrower may get the loan amount with a rate of interest of 8.75%. Now, the borrower is required to pay an extra sum of INR 17 monthly on each INR 1 lacs borrowed. Here, the MGC will get 1.3% of the loan amount in the form of fees for providing the guarantee. In the absence of this, the borrower may either visit any lending financial institution that provides a high rate of interest on a loan or get a lower loan amount. In the Indian market, if the loan turns bad, it means there is no payment made for 90 days after the guarantee kicks in, and IMGC is more likely to make its share of the payout. Banks chase their borrower for money and to decide the property to foreclose upon. As the property is sold through the SARFESI Act, the mortgage guarantee company gets back its guarantee shares. Market Size of Mortgage Guarantee Company Indian Mortgage Guarantee Corporation aims to double its business operation over 9,000 crores in FY24. It guaranteed INR 4,800 Crore worth of home loans during the fiscal year of 2022-23. The home loan mortgage guarantor is more likely to increase its portfolio on the guarantee to mover 30,000 crore by the end of the 2023 year. It has surpassed INR 20,000 crore in home loan guarantees for customers of more than 1 lakh within the 400 locations within the country since its inception in 2012. The IMGC is looking forward to business upward of more than INR 9,000 crore to achieve growth during FY-24 and made a statement to add more lenders to increase penetration within the existing lenders. Approx. 85% of IMGC's portfolio reflects the Pradhan Mantri Awas Yojna and the average ticket has gone down by 19 lakhs from 26 Lakhs during the past 4 years due to efforts made towards affordable housing segments. The mortgage guarantee company, along with Enact MI, the Brookfield Group, the National Housing Bank, the IFC World Bank Group, and Asian Development Banks, associates with 23 lending financial institutions to extend home loan guarantees to borrowers. This will guarantee 20% of the loan amount, with a rough value of 2 years of equated monthly instalments (EMI). In case any borrower defaults on EMIs for 3 months, then the company will commence the EMI payments while the lender executes the recovery process. South India accounts for 30 to 35 % of the company share, where INR 2300 crore home loans are guaranteed in FY23. It reflects a huge scope for growth of 51 lakh houses sanctioned under PMAY in southern India, and 41 lakh houses have a shortage, creating a demand for housing. The global mortgage guarantee market was valued at approx. USD 7.82 billion during 2021 and is projected to reach beyond USD 37.64 billion by 2030, at a CAGR of 19.07% from 2023-2030. A rapid increase in innovative technological development in mortgage lending automation and machine learning usages in mortgage lending is projected to boost the mortgage lending industry in the future. The Indian home loan mortgage market is poised to grow by a CAGR of 7% during the 2023-28 forecast period. With the growth and rise in favourable conditions like income levels, enhanced affordability rates, and fiscal support, the demand for home loans is expected to grow in the Mortgage guarantee landscape. Meanwhile, during the pandemic, the mortgage guarantee finance market has been heavily affected, and because of the lockdown, jobs were limited and saw a high drop in income rate, even jobs left out, which resulted in a huge fall in the housing market and its demands going down. Key Trends Shape in the Indian Mortgage Company Market: . Moreover, the mortgage market has been growing steadily as various factors are driven, including urbanization, increasing disposable incomes, and government programs to encourage the development of the housing and real estate sector. Housing finance companies, NBFCs, and banks are more likely to represent the mortgage guarantee market size. The market exhibits significant growth potential due to the large population size of the country and increased demand for housing. The availability of Affordable Housing drives the market size. The market has been underdone with structural transformation within both the demand and supply over the last years. This transformation made a safe and attractive environment for buyers to purchase a home. Housing loans are more likely to contribute 50% of personal/retail loans. Although the affordability for housing has also enhanced within the last 5-6 years and reached beyond its best level during the last fiscal years, it stays attractive. It is expected to boost user demand in segments of affordable and mid-income levels. The government has launched different schemes to promote the affordable housing segment, including the Pradhan Mantri Awas Yojna (PMAY), with the intent to offer housing for all. Such a government approach has boosted and enhanced the market size of mortgage Guarantee Companies as it encourages individuals to purchase homes. Digitalization This trend serves mortgage companies within India to adopt digital technologies into business operations, such as digital documentation, the online application process, and the use of data analytics to assess business risks and enhance customer profiles. Further, the pandemic has boosted the growth of this trend as remote-less and contactless financial services were prominently important. Competitive Landscape The mortgage guarantee market seems competitive as both the established and new players are competing within the market for shares; traditional players, including banks, HFCs, and NBFCs, are prominent among competitors, while the traditional players, such as fintech, startups are trying to enter the mortgage guarantee market through their offerings as innovated and advanced solutions for the borrowers. Regulatory Changes Market regulators like the Reserve Bank of India and the National Housing Bank are formulating regulatory changes to enhance the mortgage market stability and save the borrower and lender by promoting responsible lending practices. Fluctuating Interest Rate The interest rate in the mortgage guarantee landscape comes under the influence of different factors like RBI policy rates and market forces. Borrowers should concentrate on these rates, which can easily impact their affordability level and the decision to have a loan. NPA Concern Non-performing assets (NPA) were one of the main concerns during the COVID-19 mortgage guarantee market, as there seemed to be a huge downturn in the economy and people lost their jobs. Lenders must assess the borrower's creditworthiness and use risk mitigation strategies. Mortgage Guarantee Products within India The concept and Idea of mortgage guarantee was adopted in the financial system in the year of 2012, and the first mortgagor guarantor, IMGC, was duly introduced. IMGC is more like a joint venture among the Asian Development Bank, the National Housing Board, the International Finance Corporation, and Genworth Financial. Moreover, the entity is acting as a service provider to ICICI Bank, LIC Housing Finance, Axis Bank, SBI, Tata Capital, and many more. RBI guideline on Mortgage Guarantee Company The Finance Minister of India, during the Union budget of 2007-08, announced that “Our people want housing loans. Banks and housing finance companies that lend against the mortgage would have greater comfort if the mortgage can be guaranteed through a three-way contract among borrower, lender, and guarantor.” Regulation will be put in place to allow the creation of mortgage guarantee companies. Accordingly, the RBI has formulated a draft scheme granting the certificate of registration for the mortgage Guarantee Company. Further, the draft discussed and received recommendations and approval from the central government to specify the mortgage guarantee company, and the notification in this regard dated 15th January 2008 was released. Registration for Mortgage Guarantee Company As the Reserve Bank of India is satisfied with the following terms and conditions, it grants the certificate of registration to the mortgage guarantee company to operate its business within India. All such conditions are subject to be fit and proper for companies seeking approval as Mortgage Guarantee Companies. An interested company who desires to commence its business to offer mortgage guarantee as a company needs to get an approval of certificate from the Reserve Bank of India and must hold a net owned fund of INR 100 crores or above as specified within the notification of RBI from time to time. The application for seeking registration must be made according to the specified format. The Reserve Bank of India, if satisfied with the purpose to consider the registration application for a mortgage guarantee company only- in case the mortgage guarantee company must primarily transact its business as a mortgage guarantee company and it is dealt to comply with it, in the case at least 90% of its business turn over arise from mortgage guarantee business means its incomes derive by reinvesting the interest earned from mortgage business and so on. The company must be capable of paying its liabilities that arise from entering into a contract of guarantee and hold an adequate capital source with an appropriate earning from the mortgage guarantee business. The general charter of such companies must not be against the public interest. The board of directors of such seeking mortgage registration companies is not entitled to hold more than half of its total board members who seem either to be a nominee of any shareholder with substantial interest or associated in any manner with shareholder or in case a shareholder is a company than a subsidiary of such shareholders. Must acquire a well-diversified shareholding. Mortgage guarantee companies are restricted from being a subsidiary of any company registered outside India according to outside enforcement laws. Mortgage Guarantee Company must, beyond the direct and indirect control of any individual, association, or body of individuals duly incorporated or not, any partnership firm or company, either registered or incorporated under any law enforced outside the territory of India. The FDI investment will be eligible for equity investment, which requires the mortgage guarantee company to get prior approval from FIPB. In case the foreign entity that received FIPB/FED approval has a direct or indirect interest in the registration-seeking Mortgage Guarantee Company, then it will be regulated by the home country's financial regulator and must hold a good track record in business operation as a Mortgage Guarantee Company. However, this will not be applicable in case the investor in the equity mortgage guarantee company seems to be an international financial institution. The public interest must be aligned with the grant of registration for the Mortgage Guarantee Company, and its operation within India should not oppose the housing fiancé sector within the country. Mortgage Guarantee Company must stay compliant and is required to comply with the norms for foreign investments in it. Along with that, all the necessary conditions must be complied with by the mortgage guarantee company for the time being, as RBI decides, and its operation must not be against the public interest and housing finance sector. After getting satisfied with these conditions, the Reserve Bank of India may grant the certificate to the concerned companies to operate their business within India as mortgage Guarantee Company. Cancellation of Certificate to Operate As Mortgage Guarantee Company The Reserve Bank of India seems to have found that the above conditions specified are not fully complied or that any registered mortgage company has ceased to operate its business as a mortgage guarantee company within India or failed to honour promptly with the claims that arise from the contract of guarantee it has entered or going to enter or, either fails to furnish the valid documents before the bank at the time of inspection. In such a scenario, the Reserve Bank is capable of cancelling the registration of the mortgage Guarantee Company. Mortgage Guarantee Contract A mortgage Guarantee Contract refers to a tri-parties contract held between the borrower, the creditor institution, and the mortgage guarantee company that offers the mortgage guarantee. The said agreement must comply with section 126 of the Indian Contract Act of 1872. It must be unconditional and irrevocable, and the guarantee that arises within the contract must be free from coercion, undue influence, fraud, misrepresentation, and mistake under Indian contract Law. It is mandatory within the contract that it should not contain the provisions of the repayment of principal and interest outstanding in the housing loan account of the borrower, up to the amount of guarantee. The guarantor shall pay the guaranteed amount on invocation without any adjustment against the realizable value of the mortgaged property. The company is debarred from operating the business as an Insurance business. Capital Requirement The Mortgage guarantee company must hold a minimum net worth of INR 100 crore during its business operations, which shall be reviewed for enhancement after 3 years. Mortgage guarantee Company is required to maintain its capital adequacy ratio at all times. Compliance for Mortgage Guarantee Company The licensed Mortgage guarantee Company are required to maintain one or more registers to make an entry of the particular guarantee duly provided by the company. Such entries include the name and address of both borrower and co-borrower, date, time, and amount of sanctioned loan, the description of the property that includes the site, location of such property, nature of security available for loan, tenure of such loan, amount and due date of instalments, name, and address of bank or housing finance company who guarantee offered, the date and amount of guarantee and its duration. Before offering a guarantee for the repayment of a housing loan, the mortgage guarantee companies are required to initiate due diligence, which includes that a valid mortgage secures the loans, whether the creditor institution has verified the property title, marketability, and borrower creditworthiness, verified the use of land where a house or residential property is constructed or going to be constructed out from the loan, need to verify the letter of permission duly obtained from the concerned authority for the construction purpose, and the loan guaranteed should not be more than 90% of property value. The mortgage guarantee company is bound to communicate to the Reserve Bank of India not more than 1 month from the occurrence of any change in its director name, contact details, address, or change in director. Mortgage Guarantee Companies are required to establish an Audit Committee of not less than three non-executive directors of the board of the company, comprising at least one of them will be a chartered Accountant. The mortgage guarantee company policy to offer mortgage guarantees to credit institutions must be duly approved by its board of directors. The said policy must specify the fee or premium chargeable to provide a mortgage guarantee depending upon specific criteria that include the quantum of loan, LTV ratio, credit quality of borrower, and credit risk managing skills of both banks and housing finance companies. It also included the delegation of power to enter into a guaranteed contract or offer a mortgage guarantee, the delegation of power to make decision-making good claims from banks and housing finance companies, and delegated power to initiate proceedings for recovering due from borrowers. Leading Companies in mortgage guarantee Landscape Here are a few mortgage guarantee companies commence their business operations- India Mortgage Guarantee Corporation (IMGC): IMGC is one of the mortgage guarantee companies incorporated in 2012 and duly regulated by the guidelines of the Reserve Bank of India in mortgage guarantee (2008). It helped more than 100,000 customers to own a home with low down payments. Thus, the company has issued a guarantee of more than INR 20,000 crores, having its primary operation and leadership teams in Noida and Mumbai. National Housing Bank (NHB): The NHB is owned by the government of India to provide mortgage guarantee products and operates its business operation to enhance housing finance within the country. Its operational vision is to promote inclusive expansion along with stability in the housing finance market. This government approach intends to make housing credit more affordable in India. Genworth Financial India: Genworth Financial India is a global insurance holding company that offers mortgage insurance, life, and mortgage guarantee products through advisors, sales, financial intermediaries, etc., in the Indian mortgage landscape. HDFC Ergo General Insurance: HDFC Ergo General Insurance Company is one of the leading companies in the insurance sector. It facilitates the services of mortgage insurance, including other housing-related products in the Indian market. It offers a wide range of insurance products ranging from motor, health, home, travel, and personal accident in retail space and is more likely to offer products like property, marine, and liability insurance within corporate space. SBI General Insurance: SBI general insurance company, having its strong parentage of SBI, seems to be growing faster in private general insurance companies. This company was established in the year of 2009 and ranging its branches from 17 to 141 branches within India. It has more than 34 crore active customers. It offers a wide range of products in different segments such as retail, corporate, SME, and rural to ensure its accessibility using digital and physical modes.