CEBU, Philippines - More benefits await members of the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund as President Gloria Macapagal-Arroyo signed a law that amends HDMF charter granting the institution more capacity to perform its housing and finance mandates.
Republic Act 9679, otherwise known as the Home Development Mutual Fund Law of 2009, amends Presidential Decree 1752, which created the institution in 1980.
Pag-IBIG Fund Mandaue branch department manager Vicky de la Peña said the new law translates to more funds for Pag-IBIG’s shelter financing programs.
She explained more funds means more benefits to members in terms of increased loanable amounts and other programs that may be created in the future once the Implementing Rules and Regulations has been drafted and approved.
Vice President and HDMF board of trustee Noli De Castro said the law will allow Pag-IBIG Fund to meet the growing demand for affordable housing finance, while still ensuring the long-term stability of the fund and the consistent delivery of benefits to its members.
According to him, housing loan disbursements have been growing consistently for the last eight years from P3.82 billion in 2001 to P37.3 billion in 2008.
De La Peña added that the law exempts Pag-IBIG Fund from paying taxes which they can plow back to their members in forms of benefits.
In Cebu, there are already about 237,000 members as of June 2009 registered in Mandaue City branch which covers the city of Mandaue and the towns in the northern part of Cebu including Bohol province.
De La Peña said that they have already released P536.78 million for housing loans as of June which is equivalent to 770 housing units dispatched.
For short-term loans available to individual borrowers and multi-purpose cooperatives, she said that they have already released about P715.657 million. Combining both comes to a total of around P1.2 billion.
De la Peña said they are so close to reaching their target of P1.3 billion released funds for short-term loans and P700 million released for housing loans.
By the end of the year, they target 1,140 housing units to be released to Pag-IBIG members. As of June, they have recorded 46, 455 borrowers.
De la Peña said they continue to encourage members to loan this time and take advantage of the low interest rates. “Because we never know in the future there might be economic recessions which may increase the interest rates,” she added. — Jessica Ann R. Pareja/WAB (THE FREEMAN)