This is following the approval by the NHMFC board of directors, headed by Housing Secretary Michael Defensor, of the extension of the implementation of the Housing Loan Condonation Act of 1998 (Republic Act 8501) to provide relief to homeowners adversely affected by current economic conditions, NHMFC president Angelico Salud said.
Eligible for the waiver of loan penalties of up to 100 percent, depending on the payment scheme availed of, are delinquent homeborrowers who have not yet earlier been granted said relief for their loans granted under either of NHMFC’s Unified Home Lending Program, Folio I loan accounts, or under the Community Mortgage Program.
To make the payments under the loan refinancing/restructuring scheme more affordable, NHMFC has also exempted borrowers, whose arrearages inclusive of penalty are at least P500,000 at the date of application for loan refinancing or loan updating, from the required 30-percent downpayment.
Instead, for accounts with previous amortizations, a 15 percent of total arrearages on loan principal and interest, inclusive of insurance premiums which should be updated, shall be required, Salud cited.
However, for loans with no amortization payments since the housing loan was released, a downpayment of 50 percent of all arrearages including insurance premiums shall be required.
This relaxation in the downpayment rule, however, shall apply to borrowers who have restructured their accounts in December last year, but before issuance of the rules on revised downpayment and tendering of the minimum downpayments allowed.
The loan penalty waiver shall also cover qualified buyers of housing accounts under NHMFC’s Assignment of Mortgage Credits and Foreclosure Rights Program, Salud added.