Pag-ibig revives loan program

The Pag-ibig Fund is reviving its direct developmental loan program in line with the policy of the Housing and Urban Development Coordinating Council to develop more developmental loan facilities.

The revival was announced by Ramon Palma-Gil, president of the Pag-ibig Fund, during the National Shelter Conference at the Shangri-La Hotel in Makati City last week, which was attended by President Estrada, the country’s housing czar.

Palma-Gil said that under the program, priority funding will go to housing projects in various stages of implementation but were deferred use to the financial crisis that swept Asia in 1998.

Projects which already have the required clearances and permits from the departments of agrarian reform and environment and natural resources. Housing and Land Use Regulatory Board and local government units will also be given priorities, Palma-Gil said.

Other projects classified as first priority under the program include housing projects that serve Philippine National Police and the Armed Forces of the Philippines personnel, as well as projects in the regions where developmental financing from other lending windows are not available.

At the same time, the Pag-ibig Fund chief announced they had developed the express take-out window under the Developer CTS 2000 Scheme, a step towards enhancing the asset quality of Pag-ibig’s housing loan portfolio.

Notable in this scheme is the call for shared risk and responsibility with accredited housing developers during the first two years of the loan.

During the crucial period of two years, the developer shall assist in the collection efforts of the Fund, instituting measures that will ensure that borrowers pay their loans on time.

After the two-year period, accounts that are in default shall be bought back by developer.

Palma-Gil also commended the Subdivision and Housing Developers Association (SHDA) for its initiative to set up a self-regulation mechanism in the form of the SHDA Guaranty Fund.

The Fund is intended to provide a standby back-up cash flow guaranty protection to Pag-ibig in case any accredited developer fails to buy back defaulting buyers within the crucial first two years of housing loan repayment.