Resolution of the Minister of Housing No. 100 of 2014 and the Periodic Letter of the Minister of Justice No. 189 dated 2/7/2014 and Overcoming Obstacles to Implementing the Initiative

Dear Mr. Chairman of the Board of Directors,

Cairo, August 31, 2014

Bank

Greetings,

Continuing the Egyptian Mortgage Bank's efforts to remove obstacles to the implementation of the housing finance initiative launched by the Board of Directors on February 18, 2014, and in the context of the meeting held with banks as well as the receipt of many inquiries regarding Minister of Housing Resolution No. (100) for the year 2014 and the obstacles facing banks in this regard, I would like to inform you as follows:

• Regarding the inquiry about the phrase "... after settling all dues of the Authority ..." mentioned in Article One of Minister of Housing Resolution No. (100) for the year 2014, we attach herewith the explanatory memorandum for the resolution issued by the Minister of Housing, which states that the meaning of this phrase is the settlement of installments due to the Authority up to the date of the request, and not the total dues of the Authority.

• Regarding complaints concerning the lack of awareness of New Urban Communities Authority devices regarding Minister of Housing Resolution No. (100) for the year 2014 and the necessity to activate it through the Ministry of Justice, the following has been done:

A. The Minister of Housing issued the necessary directives to the heads of New Urban Communities Authority devices to provide all required facilities for clients, whether from mortgage finance companies or banks, regarding mortgage financing.

B. The Minister of Justice issued Letter No. (189) dated 2/7/2014 (copy attached) to Real Estate Registration Offices and their supervisors, Notary Offices and their branches, and General Administrations within the Authority to activate the aforementioned resolution and facilitate mortgage financing procedures.

And based on the foregoing, in case obstacles continue to exist, banks must send these cases to the Engineer / Deputy Chairman of the New Urban Communities Authority for the Development and Cities Sector for consideration, while sending a copy to the Housing Finance Support Guarantee Fund for follow-up regarding low-income individuals.

This, and through monitoring the extent of banks' use of the initiative, it has become clear that they have not benefited from it as expected, especially regarding the medium-income customer segment. And based on the foregoing, you must inform us of any additional obstacles facing banks in implementing the initiative so that we can work to remove them to achieve the desired results.

Please be kind enough to alert regarding taking the necessary action in this regard.

Accept our highest respect,

Gamal Naguib

With reference to what was stated in Article One of the Minister of Housing and Infrastructure Resolution regarding mortgaging the building or residential unit or rejecting the student's request, it clarifies the reason for rejection and the student has the right to appeal, and mortgage requests are recorded - according to the date of submission - in a special mortgage register kept by the competent administration in each New Urban Community device, and it confirms what has been done in terms of procedures regarding each request, and the applicant or interested party has the right to obtain a certificate regarding what has been done regarding this property in terms of mortgages or what procedures have been taken regarding it. "The phrase mentioned in Article One of this resolution is the installments due to the Authority - New Urban Communities Authority - Egypt.

Arab Republic of Egypt Ministry of Housing and New Urban Communities Minister's Office Postal Code 11411 Explanatory Memorandum for Minister of Housing and New Urban Communities Resolution No. (100) for the year 2014.

The New Urban Communities Authority devices are obliged, upon request from mortgage finance companies or banks, to issue a statement within a deadline of fifteen days from the date of submission of the request regarding the possibility of mortgaging buildings or residential units located on areas designated for individuals and investors, excluding land, after settling all dues of the Authority, and in case of stating the impossibility of mortgaging the building or residential unit or rejecting the request, the reason for rejection is clarified and the applicant has the right to appeal before the Main Appeals Committee.

Mortgage requests are recorded - according to the date of submission - in a special mortgage register kept by the competent administration in each New Urban Community device, and it confirms what has been done in terms of procedures regarding each request, and the applicant or interested party has the right to obtain a certificate regarding what has been done regarding this property in terms of mortgages or what procedures have been taken regarding it.

Please be kind enough to note and be informed that the meaning of the phrase "... after settling all dues of the New Urban Communities Authority ..." is up to the date of submission of the request and not the total dues of the Authority, and the competent authorities are to implement this each in its respective area.

3 : 17 Ministry of Justice, Real Estate Registration and Notary Public Service, General Administration of Legal Research. Periodic Letter No. (189) dated 2/7/2014.

To Real Estate Registration Offices and their supervisors, Notary Offices and their branches,

• And General Administrations within the Authority.

In continuation of Periodic Letter No. 10 dated 20/3/2007 announcing the Protocol signed between the New Urban Communities Authority and the General Authority for Housing Finance Affairs, concerning the possibility of dealing with the housing finance system on lands designated for the New Urban Communities Authority, which is the Protocol approved by the Minister of Housing, Infrastructure and New Urban Communities.

We have been notified by the Honorable Counselor / Assistant Minister of Justice for Real Estate Registration and Notary Public matters, by his letter No. 37 issued on 27/2/2014, attached with a copy of the Engineer Minister of Housing and New Urban Communities Resolution No. 100 for the year 2014, issued on 3/2/2014, which was issued to facilitate mortgage financing procedures and mortgage registration in new cities, which stipulates:

(1) New Urban Communities Authority devices are obliged, upon request from mortgage finance companies or banks, to issue a statement within a deadline of fifteen days from the date of submission of the request regarding the possibility of mortgaging buildings or residential units located on areas designated for individuals and investors, excluding land, after settling all dues of the Authority, and in case of stating the impossibility of mortgaging the building or residential unit or rejecting the request, the reason for rejection is clarified and the applicant has the right to appeal before the Main Appeals Committee.

Mortgage requests are recorded - according to the date of submission - in a special mortgage register kept by the competent administration in each New Urban Community device, and it confirms what has been done in terms of procedures regarding each request, and the applicant or interested party has the right to obtain a certificate regarding what has been done regarding this property in terms of mortgages or what procedures have been taken regarding it.

Page (2)

• [10] M. C. Gonzalez-Garcia, M. C. Gonzalez-Garcia, M.

The devices affiliated with the New Urban Communities Authority issue a certificate regarding the property or unit financed through mortgage financing and required to be registered, containing all spatial data related to it and the sequence of ownership until its transfer to the registration applicant, and what may have been done in terms of transactions or mortgage registrations, and building compliance with the permit sources. This certificate is addressed to the competent Real Estate Registration Office for registration based on it, and a copy is delivered to the certificate applicant.

• [10] M. C. Gonzalez-Garcia, M. C. Gonzalez-Garcia, M.

In case of accepting mortgage financing applications for units owned by the New Urban Communities Authority, the heads of the Authority's devices are required to sign the tripartite mortgage financing contracts issued regarding their models by a decision from the Minister of Investment in accordance with the provisions of the Housing Finance Law and its executive regulations, provided that residential units

· Financed through mortgage financing are exempt from transfer fees.

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( Article Four )

Partial registration of a part of the large areas designated by the New Urban Communities Authority is permitted, provided that the financial installments due for the entire designated area are settled up to the date of the registration request and the full price required for registration is paid.

• [10] M. C. Gonzalez-Garcia, M. C. Gonzalez-Garcia, M.

This resolution is to be implemented from the date of its issuance, and the competent authorities are to implement it each in its respective area.

Number of pages (3)

• 3-

Follow-up of Periodic Letter No. 189 for the year 2014

• [16] A. A. K.

t . . v/r/r > The executive instructions for Periodic Letter No. 60 mentioned above are added under paragraph five, the text of which is as follows: -

• That in case the certificate mentioned in Article Four of the Engineer Minister of Housing and New Urban Communities Resolution No. 100 for the year 2014 is submitted with the other legally required documents, the legally prescribed procedures are taken in accordance with the rules organizing Real Estate Registration.

Therefore, it is necessary to inform regarding the above and ensure its implementation.

• [10] M. C. Gonzalez-Garcia, M. C. Gonzalez-Garcia, M.

General Administration of Legal Research 112 119.

Head of the Department