To Members of the Malaysian Bar

Launch of LPPSA’s Loan Management System

Lembaga Pembiayaan Perumahan Sektor Awam (Public Sector Home Financing Board, “LPPSA”) is transitioning to a new system known as the “Loan Management System” (“LMS”), which is expected to be launched on 1 Apr 2019 (Monday).

LPPSA has announced that the cut-off date for all existing transactions is 11 Mar 2019 (Monday)(“Cut-Off Date”).

The Bar Council Conveyancing Practice Committee (“CPC”) was invited by LPPSA for a briefing session on 28 Feb 2019, which was attended by CPC members Oon Hooi Lin, Queenie Sin Siew Kuen and Zemilah Bt Mohd Noor.  They were informed of the following:

(1) After the Cut-Off Date, no transaction will be processed — including processing of new loans, issuance of letters of offer, execution of security documents, release of facility, or release of any security documents  — until after LMS is launched;

(2) If the process goes as planned, LMS will be launched on 1 Apr 2019 (Monday);

(3) Solicitors and developers are expected to take note of the Cut-Off Date and, where necessary, arrange and expedite the completion of the affected sale and purchase transactions so that they are not adversely affected by the halt in processing during the transition period; and

(4) LPPSA has had a meeting with the representatives from the Real Estate and Housing Developers’ Association Malaysia (“REHDA”), informing REHDA of the transition to LMS, and requesting for waiver of any late payment interest on the progressive billing due, which may arise from the transition.

Pursuant to the above, solicitors handling cases which are or may be affected are advised to write in to the relevant developers for written waiver of such late payment interest.  Solicitors may also wish to advise their clients to consider extending the time for completion in sub-sale cases, if necessary.

Please find attached the notification from LPPSA for your reference, which is also accessible here on LPPSA’s official website.   
Should you have any enquiries, please contact LPPSA at 03-8880 1600 or lms.enquiry@lppsa.gov.my.

Thank you.

Roger Tan 
Chairperson 
Conveyancing Practice Committee

1 Attachment

LPPSA Notification.pdf