QuestionsQuestions (BSP MEMORANDUM NO. M-2011-059)
It provides a temporary banking guideline on how to treat Electronic Primary Entry Book (EPEB) entry/reference numbers and the related documents (OR and AFPO) as acceptable evidence of registration/cancellation of mortgage instruments or liens for purposes of classification and allowance for probable losses on mortgage loans.
It applies as a temporary measure pending the completion of the LRA computerization project involving the digitization of titles.
Official Receipt (OR) and supporting Assessment Form and Payment Order (AFPO) issued by the Land Registration Authority (LRA).
If the OR and AFPO bear the same EPEB entry/reference number, they shall be considered acceptable documentation and evidence of registration/cancellation of the mortgage instrument/encumbrance or lien.
They must both bear the same Electronic Primary Entry Book (EPEB) entry/reference number.
For classification and setting up of allowance for probable losses on mortgage loans.
They are considered free of technical defects or documentation deficiencies and are considered compliance with registration requirements of the registry of deeds.
Yes. The memorandum specifically conditions acceptability on the OR and AFPO bearing the same EPEB entry/reference number.
The memorandum’s safe treatment applies only when both documents bear the same EPEB entry/reference number; otherwise, the memorandum does not confer the “free of technical defects” and “compliance” treatment.
No. It is explicitly a temporary measure until the LRA completes its computerization project, after which a subsequent advisory is to be issued.
It is effective until the LRA completes its computerization project; a subsequent advisory will clarify the effect upon completion.
The allowance for probable losses, which depends on the perceived risk and documentation compliance of mortgage-backed loans.
Nestor A. Espenilla, Jr., Deputy Governor, BSP.
Adopted: 22 November 2011; Date Filed: 26 January 2012—these details may be relevant to understanding issuance and administrative processing, though the effectivity language states it runs until LRA’s computerization is completed.
It does not expressly change the substantive law; instead, it provides a temporary evidence/documentation standard for banks’ compliance assessment and risk provisioning purposes.