Informal loans hit record high levels

Informal settlers have availed themselves during the first 10 months of the year some P241.8 million in loan assistance under the government’s Community Mortgage Program (CMP) to finance their land tenure and housing security, exceeding the loan levels during the previous two years, according to the National Home Mortgage Finance Corporation (NHMFC).

Lawyer Angelico T. Salud, NHMFC president, in a report to Housing Secretary Michael T. Defensor, concurrent chairman of the Housing and Urban Development Coordinating Council, said that the loans granted as of last month have exceeded by 21 percent and 18 percent the CMP loan levels in the years 2000 and 1999, respectively.

While the loan performance is lower than the annual average CMP loans of P246 million during the last 13 years of the urban poor home financing program, year-end figures are expected to reach the P300-million mark, based on the average monthly loans of over P24 million during the first 10 months, he informed.

Loan beneficiaries during the last 10-month period reached a total of 6,833 and are expected to match the annual average of 8,637 informal settler-families, Salud said.

He also informed that NHMFC is targeting a total of 23,000 beneficiaries with a total of P1 billion in loans during the period July 2001-June 2002, as the agency’s contribution to President Arroyo’s commitment to provide 50,000 informal settlers with housing assistance.

He expressed confidence to meet this target within the remaining eight months should the agency receive the corresponding fund releases consisting of national government subsidies for the Community Mortgage Program.

The agency has started to implement radical policy and administrative changes, which he said will help in meeting these targets and boost housing acquisition by the informal housing beneficiaries.