Press Release
May 11, 2008

Zubiri: Millions of low-income families to benefit from loan restructuring nationwide

"It is all about helping people stay in their homes. They have undergone hard times making ends meet and losing their homes should not be an additional burden on the millions who have delinquent loans with government financial institutions (GFIs) and housing agencies."

"Others may want GFIs to repossess the housing units to sell these later to others who are better placed. However, the committee chose not to drive them out of these houses and instead provide a new loan restructuring program."

"Through these loan restructuring program, the residents are saved and the GFIs don't hit red bottomlines."

Subject: Loan restructuring of delinquent socialized and low-cost housing accounts

Coverage:

  • Delinquent loans with the government financial Institutions (GFIs) - Government Service Insurance System, social Security System, Home Development Mutual Fund, National Home Mortgage finance Corporation, Social Housing Finance Corporation, Home Guaranty corporation and housing agency National Housing Authority;
  • Loans with at least six months of unpaid monthly amortizations; and
  • Original principal does not exceed P2.5 Million.

Benefits of Committee Report No. 30:

  • Condonation of all penalties and surcharges;
  • Condonation of a reasonable portion of the interest of the housing loan, as determined by respective GFIs and agencies

- all accrued interests shall be treated as non-interest bearing principal to be equally repaid
- all corresponding penalties and surcharges due from NHMFC and SHFC to their funders are to be likewise condoned by said funders;

  • Extension of loan restructuring payment period to lower the monthly amortization

- extension shall not exceed the difference between the borrower's age and 65 years; and

  •  Incentives e.g. reasonable discount on interest for prompt payment of monthly amortization on restructured loan.

Delinquent loan disqualified from availment of CR 30:

- Account without a single payment since take out;

- Account wherein housing units had been abandoned for 2 years from the date of delinquency;

- Account wherein the housing unit is occupied by a 3rd party; and

- Foreclosed account, the title of which had already been consolidated/transferred in the name of the GFI and housing agency. 000 PLEASE OPEN ATTACHMENT FOR TABLE OF DELINQUENT ACCOUNTS. Maraming salamat po.

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