Regulatory Alerts2016-10-26
Added · Updated
Credit Risk Management - Property Mortgage Lending
The Hong Kong Monetary Authority mandates that authorized institutions subscribe to the Land Registry's new e-Alert Service to detect unauthorized further mortgages on properties. Institutions must implement this system for all new mortgage applications and apply stricter underwriting standards, such as higher interest rates or lower loan-to-value ratios, when property owners withhold consent for the alerts. For existing mortgages, the regulator encourages risk-based sampling to identify unregistered encumbrances rather than requiring full subscription to the notification service.
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