A conduit company will start operating in Israel in the next few weeks, "Globes" has learnt. The company, which has already registered with the Companies Registrar under the name of "Maor", will buy mortgage portfolios from the banks, issue mortgage-backed bonds, and market them. Maor will be Israel’s first-ever conduit company.
The founders of the company are: Orik Dagan, an Israeli businessman who spend 15 years working in the US, where he was active in the secondary mortgage market; Contractor Uri Dori of the A Dori company; Diamond Industries Association president Yigal Hoizman; Zeev Lichtenson of Lichtenson Marketing Communications; and businessman David Yadin.
"We embarked on the project three years ago," Lichtenson said today. "Professionally, we’re ready to start operating. Business-wise, we’re negotiating with relevant bodies in Israel and abroad. At this stage, we’re trying to educate the markets."
Lichtenson said that Maor was expecting to sign its first deal in the secondary mortgage market "in a few months". He added, "Things are happening at a very fast pace."
A few months ago, the Knesset Finance Committee approved measures paving the way for the establishment of a secondary mortgage market. Bank Tefahot, Israel’s biggest mortgage bank, has already announced its intention to carry out, by the end of the year, a first deal in the secondary mortgage market, whereby it will sell 3,000 mortgage portfolios and raise NIS 200 million.
Bank Mishkan has also started looking into possible deals in the secondary mortgage market.
Published by Israel's Business Arena September 5, 1999