The Philippines’ thrift lenders are currently in the process of collecting and consolidating inputs to draft a proposed law that will “cut banks’ time and effort” in foreclosing and selling assets.
The proposed law is expected to assist “thrift banks in sell[ing] foreclosed assets faster so that it will have more cash to lend to farmers and small businesses, Chamber of Thrift Banks (CTB) president Pascual Garcia III said.
It takes two to five years for banks to foreclose real estate property, he explained. Period of redemption takes at least one year and even if the bank has acquired the property, it has to secure a writ of possession to physically take it, he explained during a CTB briefing on Wednesday.
“Hopefully, through that program we will initiate this year, we will invite favorable legislative consideration of improvements in the processes and therefore help banks manage this particular portfolio,” Garcia said.
However, this is just one of the group’s two pronged approach in establishing a framework rationalizing rules and requirements in foreclosure proceedings.
The group decided to proceed via legislative and judicial means, CTB executive director Suzanne I. Felix said.
The group has also been advised to “go to the judicial way” by seeking to amend the recent administrative order issued by Supreme Court Chief Justice Reynato Puno.
The Supreme Court justice was the CTB’s guest of honor at an event two years ago which discussed “the indiscriminate court issuances of temporary restraining orders,” Felix said.
Via GMA NewsTV