Authority and governing approval
- The Circular states it is issued based on the approval of the Senior Management Committee last 20 August 2014.
- The Officer-in-Charge and Deputy Chief Executive Officer–Support Services Cluster signs the Circular.
Interim documentation policy for developer-assisted loans
- The Circular establishes interim documentation policies for Circular No. 344.
- For all developer-assisted housing loan applications, the Deed of Conditional Sale (DCS) documentation is replaced.
- For the same processing, the Deed of Assignment of Contract-to-Sell (CTS) with Special Power of Attorney and CTS are used instead of DCS.
- For this documentation, the subject retention fee for the conversion of accounts to Real Estate Mortgage (REM) is required.
Loan processing standard: loan-to-appraisal ratio
- The Circular requires that, for developer-assisted housing loan accounts, the ratio of the loan amount to the appraisal value of the collateral must follow the stated schedule.
- For loan amounts up to P1,250,000, the loan-to-appraisal value ratio is 90%.
- For loan amounts over P1,250,000 to P6,000,000, the loan-to-appraisal value ratio is 85%.