Regulatory Alerts2011-01-01
Circular No. 92 (2011): Mandatory Fields for Reporting Housing and Mortgage Loans
The Palestine Monetary Authority issued Circular No. 92 (2011) to mandate specific demographic data fields for reporting housing and mortgage loans across all lending institutions operating in Palestine. The directive establishes a revised reporting framework that distinguishes between mandatory and non-mandatory data points based on the specific loan purpose, such as property securing, finishing, construction, purchase, or land acquisition. Financial institutions must strictly adhere to these standardized fields and referenced annex classifications to ensure consistent and accurate regulatory reporting.
Palestine Monetary Authority
(2011/92) Circular No. To all lending institutions operating in Palestine Date: Wednesday, May 25, 2011 Subject: Mandatory Items in Reporting Housing and Mortgage Loans In continuation of our Circular No. (2011/63) issued on 19/04/2011 concerning the demographic file structure for housing and mortgage loans, and following the field visits conducted with banks to follow up and take necessary measures to complete the project, please find attached the revised demographic file specifying the mandatory and non-mandatory fields that must be adhered to during the reporting process, based on the purpose of the granted loan. Accordingly, all lending institutions are requested to adopt the attachment as the basis for reporting demographic data fields for housing and mortgage loans. Public Relations and Market Discipline Department Palestine Monetary Authority Ramallah - Al Bireh P.O.Box 452 - Tel: 02-2409920 - Fax: 02-2409922 Gaza - P.O.Box 4026 - Tel: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps Ramallah - Al Bireh P.O.Box: 452 - Tel: 02-2409920 - Fax: 02-2409922 Gaza - P.O.Box: 4026 - Tel: 08-2825713 - Fax: 08-2844487 www.pma.ps
Demographic Data File for Housing and Mortgage Loans Mandatory Items Based on Loan Purpose
| Seq. | Field Name | Field Nature |
|---|---|---|
| 1. | Number of applications submitted during the period | Mandatory regardless of loan purpose |
| 2. | Number of rejected applications during the period | Mandatory regardless of loan purpose |
| Seq. | Field Name | Disclosure Mandatory Nature |
|---|---|---|
| 1. | ID Number / Passport / Company Registration / Entity | Mandatory regardless of loan purpose |
| 2. | Document Type<br>Specify the type of document held by the borrower according to the classifications in Annex No. (20) | Mandatory regardless of loan purpose |
| 3. | Nationality<br>Borrower's nationality according to the passport type held, per classifications in Annex No. (21) | Mandatory regardless of loan purpose |
| 4. | Loan File Number | Mandatory regardless of loan purpose |
| 5. | Institution Number<br>Number of the lending institution according to classifications in Annex No. (22) | Mandatory regardless of loan purpose |
| 6. | Financing Duration | Mandatory regardless of loan purpose |
| 7. | Property Nature<br>Specify property nature according to classifications in Annex No. (16) | Mandatory regardless of loan purpose |
| 8. | Loan Purpose<br>Purpose of the loan according to classifications in Annex No. (17) | Mandatory regardless of loan purpose |
| 9. | Property Zone according to Oslo<br>Property zone per Oslo classifications per Annex No. (9) | Mandatory regardless of loan purpose |
| 10. | Loan Guarantee Ratio from Other Financial Institutions | Property securing: Non-mandatory<br>Property finishing: Mandatory if other institutions are involved; otherwise, report value (0)<br>Property construction: Mandatory if other institutions are involved; otherwise, report value (0)<br>Property purchase: Mandatory if other institutions are involved; otherwise, report value (0)<br>Land purchase: Mandatory if other institutions are involved; otherwise, report value (0) | | 11. | Appraised Value of the Subject Property | Property securing: Non-mandatory<br>Property finishing: Mandatory if appraised value is unavailable; the reported value by the borrower or institution's valuation shall be considered<br>Property construction: Mandatory<br>Property purchase: Mandatory<br>Land purchase: Mandatory | | 12. | Appraised Value of the Collateral Property | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Mandatory<br>Property purchase: Mandatory<br>Land purchase: Mandatory | | 13. | Down Payment Value | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Non-mandatory<br>Property purchase: Mandatory<br>Land purchase: Mandatory | | 14. | Property Geographic Location<br>Governorate where the property is located according to classifications in Annex No. (18) | Mandatory regardless of loan purpose | | 15. | Property Area | Mandatory regardless of loan purpose | | 16. | Interest Rate | Mandatory regardless of loan purpose | | 17. | Interest Type<br>Type of interest calculated on the loan according to classifications in Annex No. (10) | Mandatory regardless of loan purpose | | 18. | Borrower's Monthly Income Value | Mandatory regardless of loan purpose | | 19. | Income Currency | Mandatory regardless of loan purpose |
| 20. | Financing Ratio of Property Value | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Non-mandatory<br>Property purchase: Mandatory<br>Land purchase: Non-mandatory | | 21. | Debt-to-Net-Income Ratio | Mandatory regardless of loan purpose | | 22. | Borrower Income Classification<br>Type of borrower's income according to classifications in Annex No. (14) | Mandatory regardless of loan purpose | | 23. | Grace Period (Number of Days) | Mandatory regardless of loan purpose | | 24. | Property Status Regarding Mortgage<br>Nature of property according to classifications in Annex No. (15) | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Non-mandatory<br>Property purchase: Mandatory<br>Land purchase: Mandatory | | 25. | Mortgage Value (Mortgage Deed) | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Non-mandatory<br>Property purchase: Mandatory<br>Land purchase: Mandatory<br>Report value (0) if no mortgage exists, and report value (0) if the land plot is mortgaged, and be | | 26. | Property Mortgage Grade<br>Property mortgage grade according to classifications in Annex No. (19) | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Non-mandatory<br>Property purchase: Mandatory<br>Land purchase: Mandatory | | 27. | Property Type<br>Property type according to classifications in Annex No. (11) | Mandatory regardless of loan purpose | | 28. | Property Insurance on the Loan<br>Availability of property insurance on the property according to classifications in Annex No. (12) | Property securing: Non-mandatory<br>Property finishing: Non-mandatory<br>Property construction: Non-mandatory<br>Property purchase: Mandatory<br>Land purchase: Non-mandatory | | 29. | Borrower Life Insurance | Mandatory for all loans if the loan duration exceeds 48 months |
List of Annexes for Housing and Mortgage Loans
| Annex No. | Borrower Status |
|---|---|
| Annex No. (1) | Borrower Status |
| Annex No. (2) | Borrower Gender |
| Annex No. (3) | Collateral Codes Provided for Loans |
| Annex No. (4) | Loan Classification Codes |
| Annex No. (5) | Customer Portfolio Status Evaluation |
| Annex No. (6) | Periodic Installment Codes |
| Annex No. (7) | Legal Status Codes |
| Annex No. (8) | Marital Status |
| Annex No. (9) | Property Zone according to Oslo |
| Annex No. (10) | Interest Type |
| Annex No. (11) | Property Type |
| Annex No. (12) | Property Insurance on the Loan |
| Annex No. (13) | Borrower Life Insurance |
| Annex No. (14) | Borrower Income Classification |
| Annex No. (15) | Property Mortgage |
| Annex No. (16) | Property Nature |
| Annex No. (17) | Loan Purpose |
| Annex No. (18) | Property Geographic Region |
| Annex No. (19) | Property Mortgage Nature |
| Annex No. (20) | Document Type |
| Annex No. (21) | International Country Codes |
| Annex No. (22) | Bank Numbers and Branches |
| Annex No. (23) | International Currency Codes |
Annex No. (1) Borrower Status
- Borrower status classified according to the following categories:
| 10 | Companies |
| 20 | Government institutions (Ministries, Municipalities, Local Councils, Governorates, etc.) |
| 30 | Public sector individuals (Government employees) |
| 40 | Private sector individuals (Private sector employees) |
| 50 | Institutions, associations, clubs, and other legal entities not registered with the Companies Registrar/Registrar, schools (and places of worship, etc.) |
| 60 | Artisans, freelancers, and merchants (representing private sector individuals including artisans, professionals, merchants, engineers, doctors, lawyers, housewives, students, etc.) |
Annex No. (2) Borrower Gender
- Gender specification:
| 1 | Male |
| 2 | Female |
Annex No. (3) Collateral Codes Provided for Loans
| SC | Securities |
| RS | Real Estate (Land and Buildings) |
| BG | Bank Guarantees |
| EM | Machinery and Equipment |
| TR | Transport Vehicles |
| DB | Discounted Promissory Notes |
| PM | Precious Metals |
| PN | Assignment of Rights |
| CS | Cash |
| PG | Natural Person Guarantees |
| CG | Legal Entity Guarantees |
| LC | Standby Letters of Credit |
| LCI | Guarantee Letters (Readiness) |
| AB | Accepted Promissory Notes |
| ID | Insurance Policies |
| SL | Transferred Salaries |
| GW | Government Guarantees |
| WF | Guarantee Funds |
| DC | Deferred Checks |
Annex No. (4) Loan Classification Codes
| J | Housing/Mortgage Loan (Jointly held by more than one person) |
| S | Housing/Mortgage Loan (Individual borrower) |
| C | Housing/Mortgage Loan (Granted to companies, entities, institutions, associations, etc.) |
Annex No. (5) Customer Portfolio Status Evaluation
| 0 | New Account |
| 1 | Compliant with Payment Agreement |
| 2 | Overdue for one month (30 days) |
| 3 | Overdue for two months (60 days) |
| 4 | Overdue for three months (90 days) |
| 5 | Overdue for four months or more (120 days) |
| 6 | Provisions (Provision established) |
| 7 | Collateral Seized for Settlement |
| 8 | Debt Restructuring |
| 9 | Debt Write-off |