Special housing loan, condonation for ousted workers, OFWs pushed

SIQUIJOR , Philippines  — The Regional Development Council -Central Visayas has passed a resolution asking government financial institutions and housing agencies to implement a special housing loan restructuring and condonation program for local workers and displaced Overseas Foreign Workers whose jobs have been affected by the global financial crisis.

The proponent of the resolution, RDC Social Development Council Chairperson Teresa Fernandez, said the program will be strictly for displaced workers and OFW’s.

Yesterday’s RDC full council meeting was held at the Siquijor State College in Larena, Siquijor and was presided by Governor Gwendolyn Garcia, chairperson of RDC-Central Visayas.

According to Fernandez, the housing loan restructuring and condonation schemes are allowed under Republic Act 9507 or the Socialized and Low-Cost Housing Loan Restructuring Act of 2008.

RA 9507 allows the re-computation of the housing loan and the readjustment of the terms of the loan, which shall become the basis for the computation of the borrowers’ monthly amortization.

The law covers the Government Service Insurance System, Social Security System, Pag-Ibig, National Home Mortgage and the Finance Corporation, Social Housing Finance Corporation, Home Guaranty Corporation and National Housing Authority.

It has been noted that a greater computation of the monthly amortization approximately 95 percent or more, is applied as payment for the interests, while only a small portion, approximately five percent or less, is applied as payment for the principal.

“The borrowers who do not have gainful employment would still be hard-pressed to meet their monthly loan obligations,” Fernandez said.

Meanwhile, National Economic Development Authority 7 Director Marlene Rodriguez said key industry players have recommended that workers and OFW’s who have been displaced from work must be given reprieve in the payment of housing loan interests, penalties and surcharges.

Records of the Department of Labor and Employment show that in 2008 alone, a total of 40,507 workers from 655 establishments have been affected by the global financial crisis. Most of the displaced workers and OFW’s who have existing housing loans are clients of the government financial institutions and housing agencies.

During the Focus Group Discussion organized by NEDA 7, it was recommended that the grant of reprieve should only be during the period of unemployment, and should not exceed a period of one year considering that the one-year period is deemed to be reasonably sufficient for displaced workers or OFW’s to find and secure gainful employment.

Fernandez also proposed that workers with existing housing loans from agencies under the National Shelter Program who were retrenched and displaced but were still affected by the global financial crisis should also be covered by the proposed program.

It was also recommended that the Housing and Urban Development Coordinating Council shall install a mechanism certifying that these workers were affected.

“The proposed loan restructuring and condonation program for displaced workers would contribute to the realization of the objectives of the resiliency plan of the government to better prepare the country for the impact of the global financial crisis,” the resolution reads. — Garry B. Lao/JMO   (THE FREEMAN)