BACKGROUND:

1. The borrowers' P1,295,000.00 Easy Home Loan under End-buyers financing tie-up with Dynamic
Realty & Resources Corp. (DRRC) for the purchase of a residential condominium unit located at Unit
UG24, 1st Flr., Dover N Tower, Hampton Gardens Phase Vll, 100 C. Raymundo Ave., Brgy. Maybunga,
Pasig City was released on October 27, 2017.

2. One of the terms and conditions of the loan is the execution of a Deed of Undertaking (DOU) by
DRRC with the conformity of the borrowers wherein they undertake to transfer the title from DRRC
to Borrowers' name and registration/annotation of LBP's mortgage thereon within 360 days from
release of the loan proceeds (or until October 22, 2018).

3. The CCT was transferred from the name of DRRC to borrowers' name last January 5, 2018 and LBP's
mortgage was registered/annotated on March 15, 2018.

4. The account turned past due on August 28, 2018 but clients were able to update it last January 14,
2019.

5. On April 26, 2019, the account reverted to past due performing after the clients failed to pay
monthly amortization in March 2019. Borrowers continued to default in their monthly amortization;
thus, the account was reverted to past due non-performing last June 25, 2019.

6. Series of collection letters and a Final Demand Letter dated August 16, 2019 issued by Litigation
Department were sent to the Borrowers.

7. Foreclosure of the collateral property did not push thru despite the issuance of the Final Demand
Letter by Litigation Department because Ms. Divinagracia visited the Bank on September 26, 2019
and submitted a letter-request for restructuring of the account.

8. Borrowers explained that they defaulted in paying the amortization due to the following reasons:
a. Ms. Divinagracia supported the expenses of her sister who was hospitalized but eventually died
due to kidney failure; and
b. They used some of their available funds as Ms. Divinagracia gave birth to her second child with
Mr. Jolongbayan.

9. Borrowers submitted updated Certificate of Income and Employment to support their request for
restructuring. Said documents were already verified per Cl Reports dated November 4 and 11, 2019.

10. Restructuring of the account failed because clients did not remit the total required up-front payment
of P19,000.00.

11. The Loan Classification Memorandum reclassifying the account from PASS to DOUBTFUL 25% was
approved last November 27, 2019 and the same was already forwarded to Credit Risk Management
Department. Said memorandum is still for validation and thus, the account was still classified to
PASS as of December 31, 2019.