Podcast
Questions and Answers
What is the required action for Regulated Entities upon receiving full repayment of a loan?
What is the required action for Regulated Entities upon receiving full repayment of a loan?
- They must hold onto the documents for up to one year.
- They need to charge the borrower for document retrieval.
- They must release all movable and immovable property documents. (correct)
- They should offer a refund to the borrower for processing fees.
Within what timeframe must Regulated Entities release original property documents after loan settlement?
Within what timeframe must Regulated Entities release original property documents after loan settlement?
- 90 days
- 15 days
- 60 days
- 30 days (correct)
Where can a borrower collect their original movable or immovable property documents?
Where can a borrower collect their original movable or immovable property documents?
- From any office of the Regulated Entity or the branch that serviced the loan. (correct)
- Only through an online portal.
- From a third-party retrieval service.
- Only from the main headquarters of the lending institution.
Why is it important for Regulated Entities to follow the guidelines on releasing property documents?
Why is it important for Regulated Entities to follow the guidelines on releasing property documents?
What issue has been noted with regard to the release of movable and immovable property documents by Regulated Entities?
What issue has been noted with regard to the release of movable and immovable property documents by Regulated Entities?
What is the primary aim of the Directions issued to Regulated Entities?
What is the primary aim of the Directions issued to Regulated Entities?
Which of the following is NOT a part of the guidelines regarding property document release?
Which of the following is NOT a part of the guidelines regarding property document release?
Study Notes
Responsible Lending Conduct
- Regulated Entities (REs) are obligated to release all movable/immovable property documents after full repayment and closure of loan accounts.
- Previously, REs exhibited inconsistent practices in document release, generating customer complaints and disputes.
- To address these issues and promote responsible lending, new directions have been issued.
Release of Movable/Immovable Property Documents
- All original movable/immovable property documents must be released within 30 days after full repayment or settlement of the loan account.
- Charges registered with relevant registries must also be removed within this timeframe.
- Borrowers can choose to collect their documents from either the original loan servicing branch or any other RE office where the documents are stored.
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Description
Test your knowledge on responsible lending practices regarding the release of property documents. Understand the obligations of regulated entities and the timeframe for document release after loan settlement. This quiz covers key guidelines that promote better lending conduct.
