NHMFC extends penalty condonation for home loans

The National Home Mortgage Finance Corp. (NHMFC) will continue to waive the collection of accumulated loan penalties due to delayed amortization for housing loans granted by the agency, provided that the borrower shall either fully pay the account; update the arrearages or restructure his loan.

Angelico T. Salud, NHMFC president, said that the housing agency has extended the implementation of its Penalty Condonation Program, pursuant to Housing Loan Condonation Act of 1998, or R.A. 8501, which program expired last Dec. 31, 2003.

The penalty waiver is open to all NHMFC housing borrowers, on a one-time availment basis, in either of the agency’s loan programs, which include the Community Mortgage Program Folio I program and the Unified Home Lending Program.

The implementation rules and regulations of R.A. 8501, promulgated under NHMFC Office Order No. 1373 dated March 25, 2002 shall continue to be in full force and effect, Salud said.

The relaxation of the required 30 percent downpayment and full updating of accounts with at least P500,000 arrearages, is also extended co-terminus with the program, according to Salud.

Moreover, the penalty condonation benefits under R.A. 8501 shall also be extended to qualified buyers with accounts under the Assignment of Mortgage Credits and Foreclosure Rights Program, subject to the terms and conditions thereof, Salud added.

Meanwhile real estate practitioners affiliated with the National Real Estate Association (NREA) have welcomed the exemption from payment of documentary stamp tax for housing loan agreements or promissory notes with amounts not to exceed P250,000, as a boon to home acquisition by low-income homebuyers/borrowers.

Architect Nestor S. Mangio, NREA national president, said that the tax relief, provided under the recently enacted R.A. 9243, "An Act Rationalizing the Provisions of Documentary Stamp Tax," and other recent taxes and incentives on real estate transactions will be among the topics of NREA’s business meetings on March 31, 6:30 p.m., at the Gabaldon Hall of Club Filipino Greenhills, San Juan, Metropolitan Manila.

He also said that invited guest of honor and speaker for the occasion, which also serves as NREA’s induction celebration for its new officers, is Commissioner Guillermo L. Parayno, Jr. of the Bureau of Internal Revenue (BIR).

The business meeting on the recent tax and incentives on real estate transactions will be of direct usefulness to housing developers, brokers and other realty practitioners, who are also invited to attend whether they are member or non-members of NREA, according to Architect Mangio.

NREA trustee & spokesperson Marissa del Mar and secretary general manager Ilagan, will be in charge of the occasion.