Regulatory Alerts2011-01-01
Circular No. 93 Mandatory Provisions in Reporting Housing and Mortgage Loans
The Palestine Monetary Authority issued Circular No. 93/2011 to mandate standardized demographic data reporting for housing and mortgage loans across all operating banks. The directive establishes a structured disclosure framework that categorizes fields as either universally mandatory or conditionally required based on the specific loan purpose, such as property improvement, construction, purchase, or land acquisition. It further supplies a complete annex index and classification codes for borrower profiles, collateral types, loan statuses, and financial metrics to ensure uniform regulatory compliance and data consistency.
Palestine Monetary Authority
Circular No. (93/2011) To all banks operating in Palestine Date: Wednesday, May 25, 2011
Subject: Mandatory Provisions in Reporting Housing and Mortgage Loans
In continuation of our Circular No. (64/2011) issued on 19/04/2011 regarding the demographic file structure for housing and mortgage loans, and following field visits conducted with banks to follow up and take necessary measures to complete the project, please find attached the amended demographic file specifying the mandatory and non-mandatory fields to be complied with during the reporting process, based on the purpose of the granted loan.
Accordingly, all banks are requested to adopt the attachment as the basis for reporting the demographic data fields for housing and mortgage loans.
Public Relations and Market Officers 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 Provisions Based on Loan Purpose
| Seq. | Field Name | Field Nature |
|---|---|---|
| 1. | Number of applications submitted during the period | Mandatory field regardless of loan purpose |
| 2. | Number of rejected applications during the period | Mandatory field regardless of loan purpose |
Nature of Field Disclosure Mandatory Requirement
| Seq. | Field Name | Field 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. | Bank Number<br>Number of the lending bank per 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 per classifications in Annex No. (16) | Mandatory regardless of loan purpose |
| 8. | Loan Purpose<br>Purpose of the loan per 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 |
| Seq. | Field Name | Field Nature |
|---|---|---|
| 10. | Loan Guarantee Ratio from Other Financial Institutions | Property Improvement: 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 Improvement: Non-mandatory<br>Property Finishing: Mandatory; if appraisal value is unavailable, use the value disclosed by the borrower or per bank assessment<br>Property Construction: Mandatory<br>Property Purchase: Mandatory<br>Land Purchase: Mandatory |
| 12. | Appraised Value of the Collateral Property | Property Improvement: Non-mandatory<br>Property Finishing: Non-mandatory<br>Property Construction: Mandatory<br>Property Purchase: Mandatory<br>Land Purchase: Mandatory |
| 13. | Down Payment Value | Property Improvement: Non-mandatory<br>Property Finishing: Non-mandatory<br>Property Construction: Non-mandatory<br>Property Purchase: Mandatory<br>Land Purchase: Mandatory |
| 14. | Geographic Location of the Property<br>Governorate where the property is located per 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 per 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 |
| Seq. | Field Name | Field Nature |
|---|---|---|
| 20. | Financing Ratio from Property Value | Property Improvement: 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 per 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>Property nature per classifications in Annex No. (15) | Property Improvement: 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 Improvement: 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 |
| 26. | Property Mortgage Grade<br>Property mortgage grade per classifications in Annex No. (19) | Property Improvement: 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 per classifications in Annex No. (11) | Mandatory regardless of loan purpose |
| 28. | Property Insurance on Loan<br>Availability of property insurance on the property per classifications in Annex No. (12) | Property Improvement: 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 term exceeds 48 months |
Index of Annexes for Housing and Mortgage Loans
| Annex No. | Borrower Characteristics |
|---|---|
| (1) | Borrower Gender |
| (2) | Loan Collateral Codes |
| (3) | Loan Classification Codes |
| (4) | Customer Portfolio Status Evaluation |
| (5) | Periodic Installment Codes |
| (6) | Legal Status Codes |
| (7) | Marital Status |
| (8) | Property Zone according to Oslo |
| (9) | Interest Type |
| (10) | Property Type |
| (11) | Property Insurance on Loan |
| (12) | Borrower Life Insurance |
| (13) | Borrower Income Classification |
| (14) | Property Mortgage |
| (15) | Property Nature |
| (16) | Loan Purpose |
| (17) | Geographic Zone of Property |
| (18) | Property Mortgage Nature |
| (19) | Document Type |
| (20) | International Country Codes |
| (21) | Bank and Branch Numbers |
| (22) | International Currency Codes |
| (23) |
Annex No. (1)
Borrower Characteristics
- Borrower characteristics 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, schools, places of worship, etc. |
| 60 | Skilled workers and professionals (e.g., private sector artisans, professionals, traders, engineers, doctors, housewives, students, etc.) |
Annex No. (2)
Borrower Gender
- Gender specification:
| 1 | Male |
| 2 | Female |
Annex No. (3)
Loan Collateral Codes
| 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 | Individual Guarantees |
| CG | Corporate Guarantees |
| LC | Standby Letters of Credit |
| LCI | Guarantee Letters (Readiness) |
| AB | Accepted Bills |
| ID | Insurance Policies |
| SL | Transferred Salaries |
| GW | Government Guarantees |
| WF | Guarantee Funds |
| DC | Post-dated Checks |
Annex No. (4)
Loan Classification Codes
| J | Housing / Joint Mortgage Loan (more than one person) |
| S | Housing / Individual Mortgage Loan |
| 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 |