Karachi: The State Bank of Pakistan has issued a circular on the new rules for the financial institutions for the recovery of loans on defaulted mortgages, a news source reported. Now the recovery can only be done through a laid down procedure of hiring chartered accountancy firms and valuers to assess the liability.
The rules laid down the mechanism for the sale of the mortgaged property under section 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001.
According to the circular, before the first notice to the mortgagor is sent, the financial institution will have to forward the case to a chartered accountancy firm for assessment of outstanding mortgage money.
Such chartered accountant firm should not have been associated with or employed by the concerned financial institution or mortgager in the past three years. The chartered accountancy firm will move forward to assess the outstanding mortgaged money of the relevant financial institution only if the mortgagees were unable to submit their claims of mortgage money to the firm.
The financial institution is also required to hire three valuers for valuation of the mortgaged property. These valuers should be from the approved list of professional valuers by the Pakistan Banks Association.
