Developers back Pag-IBIG Fund's new loan policy

MANILA, Philippines - The Subdivision and Housing Developers’ Association (SHDA) Inc., and the Organization of Socialized Housing Developers (OSHDP) of the Philippines, two of the country’s biggest groups of housing developers issued a statement yesterday saying they support the new Home Development Mutual Fund (HDMF) policy on membership contribution requirements (amended HDMF circular No. 247.)

SHDA national president Manuel C. Crisostomo said that “it is just but wise and timely for Pag-IBIG Fund to re-examine their requirement for membership contribution vis-a-vis loan availment. “Crisostomo added that “regular members who have been religiously paying their membership contributions should be given priority in the extension of HDMF benefits and services. The practice of allowing instant membership has opened the home lending program of Pag-IBIG Fund to abuse by some unscrupulous developers to the disadvantage of members who have been contributing to the Fund for a long time already.”

For her part, OSHDP national president Linda Tan pointed out that “The amendment to HDMF Circular 247, has been discussed thoroughly with the developers in the HDMF/SHDA/OSHDP technical working group meetings since early this year, contrary to what some quarters claim as a surprise move by Pag-IBIG Fund. The technical working group has been the venue for the Fund and the private developers in discussing policy changes which will improve housing delivery before they are implemented. And as a result of this continuing dialogue with developers, Pag-IBIG Fund deferred full implementation of this circular to give ample time for borrowers and developers to adjust accordingly.”

The SHDA and OSHDP are the biggest groups of developers directly responsible in the production of some 250,000 housing units annually. OSHDP produces up to 95 percent of the inventories for socialized housing.

Both Crisostomo and Tan stressed that there should be a levelling of the playing field in the housing industry, and for the private sector to be vigilant and participative with the government in the continuous review, evaluation and improvement of housing policies and programs. They also expressed confidence in the competence of the present Pag-IBIG Fund officers and support their efforts in improving the Pag-IBIG Housing Loan Program.