Purpose and temporary measure
- The memorandum is issued as a temporary measure pending completion of the Land Registration Authority (LRA) computerization project involving digitization of titles.
- The measure guides banks on what documentation is acceptable for purposes of mortgage loan processing in the interim period.
Core rule on acceptable mortgage evidence
- For purposes of classification and setting up of allowance for probable losses on mortgage loans, banks may treat specific LRA-issued documents as acceptable proof.
- When the Official Receipt (OR) and the supporting Assessment Form and Payment Order (AFPO) issued by the LRA bear the same Electronic Primary Entry Book (EPEB) entry/reference number, they are considered acceptable documentation and evidence of:
- registration of the mortgage instrument, and
- cancellation of the mortgage instrument/encumbrance or lien.
- Mortgage loans supported by original copies of both the OR and the AFPO bearing the same EPEB Entry/Ref. No. are considered free of technical defects and free of documentation deficiencies for these purposes.
Compliance with registry of deeds requirements
- Mortgage loans supported by the original OR and AFPO with the same EPEB Entry/Ref. No. shall be considered compliance with the registration requirements of the registry of deeds.
Effectivity and duration
- The memorandum is effective until the LRA has completed its computerization project.
- A subsequent advisory shall be issued regarding the completion of the LRA computerization project.
- The measure’s effectivity is framed as continuing during the interim period pending completion of the LRA digitization/computerization work.