What happens if a developer mortgages a project without HLURB approval?

A developer must obtain approval from the Housing and Land Use Regulatory Board (HLURB) before mortgaging a project in order to protect buyer interests and ensure that the development adheres to regulations. If a developer mortgages a project without this necessary approval, the mortgage is rendered void as to the whole mortgage. This means that the mortgage agreement cannot be enforced, thereby protecting the rights of the buyers and investors involved in the project, as they have a vested interest in the development being completed properly and legally.

In this context, the other responses do not adequately reflect the legal implications of not obtaining HLURB approval. For instance, a fully valid mortgage would imply it stands regardless of regulations, which contradicts the requirement for compliance. Additionally, being subject only to fines does not capture the full legal consequence of voiding the mortgage, and conditioning the validity on specific lots would not address the overarching issue that the entire mortgage is impacted due to lack of approval. Thus, the option reflecting the complete nullification of the mortgage is the most accurate representation of the situation.