diff --git a/modules/core/src/main/java/org/apache/synapse/mediators/transform/PayloadFactoryMediator.java b/modules/core/src/main/java/org/apache/synapse/mediators/transform/PayloadFactoryMediator.java
index ef87351660..8f4b00e2fa 100644
--- a/modules/core/src/main/java/org/apache/synapse/mediators/transform/PayloadFactoryMediator.java
+++ b/modules/core/src/main/java/org/apache/synapse/mediators/transform/PayloadFactoryMediator.java
@@ -84,16 +84,6 @@ public class PayloadFactoryMediator extends AbstractMediator {
     private static final Log log = LogFactory.getLog(PayloadFactoryMediator.class);
 
     public PayloadFactoryMediator() {
-        //ignore DTDs for XML Input
-        inputFactory.setProperty(XMLInputFactory.SUPPORT_DTD, Boolean.FALSE);
-        inputFactory.setProperty(XMLInputFactory.IS_COALESCING, true);
-        Map props = StAXUtils.loadFactoryProperties("XMLInputFactory.properties");
-        if (props != null) {
-            for (Object o : props.entrySet()) {
-                Map.Entry entry = (Map.Entry) o;
-                inputFactory.setProperty((String) entry.getKey(), entry.getValue());
-            }
-        }
     }
 
     /**
diff --git a/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/FreeMarkerTemplateProcessor.java b/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/FreeMarkerTemplateProcessor.java
index a12acb4c00..a097afd1f3 100644
--- a/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/FreeMarkerTemplateProcessor.java
+++ b/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/FreeMarkerTemplateProcessor.java
@@ -34,6 +34,7 @@
 import org.apache.axiom.om.OMElement;
 import org.apache.axiom.om.OMNode;
 import org.apache.axiom.om.OMText;
+import org.apache.axiom.om.util.StAXUtils;
 import org.apache.commons.lang.StringUtils;
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
@@ -60,6 +61,7 @@
 import java.util.Map;
 
 import javax.xml.parsers.ParserConfigurationException;
+import javax.xml.stream.XMLInputFactory;
 
 import static org.apache.synapse.mediators.transform.pfutils.Constants.ARGS_INJECTING_NAME;
 import static org.apache.synapse.mediators.transform.pfutils.Constants.ARGS_INJECTING_PREFIX;
@@ -119,6 +121,7 @@ public void init() {
             compileFreeMarkerTemplate(format, getMediaType());
             templateLoaded = true;
         }
+        this.readInputFactoryProperties();
     }
 
     @Override
diff --git a/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/RegexTemplateProcessor.java b/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/RegexTemplateProcessor.java
index d96889408e..1a6ba8958c 100644
--- a/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/RegexTemplateProcessor.java
+++ b/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/RegexTemplateProcessor.java
@@ -47,7 +47,7 @@ public String processTemplate(String template, String mediaType, MessageContext
 
     @Override
     public void init() {
-        // nothing to do since no pre processing is needed
+        this.readInputFactoryProperties();
     }
 
     /**
diff --git a/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/TemplateProcessor.java b/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/TemplateProcessor.java
index c225954ccb..d7d5f65e5e 100644
--- a/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/TemplateProcessor.java
+++ b/modules/core/src/main/java/org/apache/synapse/mediators/transform/pfutils/TemplateProcessor.java
@@ -23,6 +23,7 @@
 import org.apache.axiom.om.OMException;
 import org.apache.axiom.om.impl.builder.StAXBuilder;
 import org.apache.axiom.om.impl.builder.StAXOMBuilder;
+import org.apache.axiom.om.util.StAXUtils;
 import org.apache.axis2.AxisFault;
 import org.apache.commons.io.IOUtils;
 import org.apache.commons.lang3.StringUtils;
@@ -526,4 +527,19 @@ protected void handleException(String msg) {
 
     public abstract boolean getTemplateStatus();
 
+    /**
+     * Read XMLInputFactory properties from XMLInputFactory.properties file.
+     */
+    public void readInputFactoryProperties() {
+        //ignore DTDs for XML Input
+        inputFactory.setProperty(XMLInputFactory.SUPPORT_DTD, Boolean.FALSE);
+        inputFactory.setProperty(XMLInputFactory.IS_COALESCING, true);
+        Map props = StAXUtils.loadFactoryProperties("XMLInputFactory.properties");
+        if (props != null) {
+            for (Object o : props.entrySet()) {
+                Map.Entry entry = (Map.Entry) o;
+                inputFactory.setProperty((String) entry.getKey(), entry.getValue());
+            }
+        }
+    }
 }