Regulatory Alerts2023-07-19
Procedures for Extending Housing Loans
The Supervisor of Banks issued Directive 451 to regulate the conduct of banking corporations when extending housing loans, defining specific loan types and application procedures. The directive mandates transparent disclosure of loan conditions, fees, and insurance requirements, while requiring the provision of an online calculator to simulate repayment compositions. It further establishes strict protocols for granting approvals in principle, conducting property appraisals, and managing collateral and repayment processes to protect borrowers.
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