Housing borrowers get P2 billion in loan relief

Economically-distressed housing borrowers have received a total of P2.18 billion in loan relief assistance from the National Home Mortgage Finance Corporation (NHMFC) through the agency’s implementation of Republic Act no. 8501, the Housing Loan Condonation Act of 1998, according to Lawyer Angelico T. Salud, NHMFC president.

In a report to Housing Secretary Michael T. Defensor, Salud said that as of last month, a total of 37,273 housing loan beneficiaries, who availed themselves of the agency’s various loan payment updating schemes, received the assistance in the form of loan penalties condoned.

"This is in compliance with the policy initiatives set by Secretary Defensor for the launching of intensified loan collection campaigns by housing agencies to recover government housing investments while at the same time provide delinquent beneficiaries with affordable loan refinancing schemes with waiver of penalties as repayment incentive," Salud said.

Covered by the loan penalty condonation program, implemented since March 1998, are borrowers under NHMFC’s Community Mortgage Program (CMP), Unified Home Lending Program, and Folio I (Old Pag-IBIG/Open-housing loan) program.

Low-income borrowers, particularly marginalized informal settlers who obtained CMP loans have hailed Sec. Defensor’s active implementation of the Housing Loan Condation Act of 1998, as "timely and responsive to the plight of beneficiaries under the prevailing economic conditions," Salud cited.

He also reported that NHMFC has adopted a number of loan collection strategies to increase its collection efficiency and improve the quality of its loan portfolio meant to effect upward movements in loan account classification; active foreclosure of ‘hard-core’ delinquent accounts; as well as through the provision of rental schemes for and active disposition of acquired housing assets, he added.

In another development, the Philippine Contractors Association, Inc. (PCA) urged the government to resolve immediately their differences with the Maynilad Water Services Inc. (MWSI) with regards to water rates increase.

The PCA said that because of their disputes, their members are the ones affected because they could not collect from the MWSI.

"We do not care how they will resolve their dispute, but they should act fast and decisive because hundreds of millions of pesos worth of collectibles is at stake here and the future of our workers. How can we repay our workers and suppliers if we cannot collect payments," the PCA said.

The P4.75 per cubic meter (cu.m.) water rates increase which will be the subject of consultations with various non-government organizations by the cabinet cluster on public services will bail out MWSI from a P2.7 billion loss in foreign exchange differential from 1997 to 2000 when the peso was devalued to P50 to $1 from P26 to $1.

The PCA claimed that the construction industry has been the barometer of economic performance of the country. It is the main vehicle of infrastructure development and has been called the prime mover of the economy. In view of its direct and indirect impact on a great number of industries, it is said to have the highest multiplier effect on the economy.

Next to agriculture and government, the construction industry is the third highest employment generator of the country with 1.5 million workers under its employ.