NHMFC grants record P311-M in urban poor homeloans

Some 55 community associations of the homeless urban poor have received a record P311.5 million in loan releases from the National Home Mortgage Finance Corp. (NHMFC) during the last five months which financed their purchase of residential lots to assure the land tenure and housing security of their 7,100 family-members.

NHMFC president Angelico T. Salud said the five-month loan releases are slightly more than half of last year’s total of P615.5 million in loans granted under NHMFC’s Community Mortgage Program (CMP).

The loans also include P145.5-million loans released last month (May), which comprise the single-biggest loan amount granted in a month during the last 15 years and five months of the home financing program for the informal settlers, Salud explained.

Already equivalent to 46 percent of the year 2004’s total CMP loan releases, the loans granted last May constitute 2.83 times the highest monthly average loan of P51.3 million reached in 2003. On the other hand, average monthly loan releases since CMP was launched in 1988, were placed at a low P25.5 million, according to Salud.

This has brought to a cumulative level of P4.715 billion the CMP loan releases made since 1988, for a corresponding aggregate of 147,750 family-beneficiaries in 1,181 homesites nationwide.

Salud also reported the release to NHMFC by the Department of Budget and Management of the initial amount of P100-million, the first tranche of the P500-million total subsidy for CMP, earlier realigned from other administration projects, following the re-enactment of the 2003 general appropriations act for the year 2004.

Meanwhile, NHMFC is implementing a special restructuring scheme for the delinquent loans of its housing borrowers, with highly-liberal features to make it truly affordable to economically-distressed housing beneficiaries.

Salud said that it features an initial monthly payments 50 percent lower than regular amortizations; no mandatory downpayment; a two-percentage point reduction in interest rates for original loans bearing interest rates of 15 percent or higher and a maximum 25-year repayment term from date of restructuring and regardless of borrower’s age.

This is in compliance with Executive Order 281, issued by President Arroyo, which provides for the deferment of eviction, foreclosure and cancellation of housing accounts; as well as the formulation and implementation of affordable loan restructuring programs during such deferment period, Salud cited.

Eligible to apply for this special payment scheme are borrowers whose accounts are considered past due for at least 12 months, particularly those under any of the following cases of payment defaults: no payment since loan take out; previously restructured but is again delinquent; foreclosed but whose certificate of sale is not yet registered; accounts assumed by heirs; with original terms already expired, but was extended; and installment accounts under NHMFC’s Sale and Assignment of Mortgage Rights (SAMOR) Program.

To avail of this limited payment scheme, applicants may submit to NHMFC’s head office, or to its regional/satellite office nearest the borrower, an application form; certified true photocopy of real estate tax for the quarter; certified true copy of the latest income tax return or an affidavit of income; latest pay slip of principal borrow/awardee/co-maker and/or buyer or rights; and other documentary requirements (I.D. card, marriage contract, etc.).