Updates on HDMF
Housing Loan Program
Juanito V. Eje
Task Force Head
Business Development Sector
24 November 2015
Presentation Outline
I. Pag-IBIG at a Glance
II. Updates on Existing Housing Loan
Guidelines
III. Approved Housing Loan Guidelines for
Implementation in 2016
IV. Updates on Government-to-Government
(G-to-G) arrangement
Your Pag-IBIG today
Dividends
15.76 Million ₱11.34
Members Billion
Highest in the Fund’s
2014 2014 34--year History
34
₱376.09 B ₱28.07 B
Total Assets Membership Savings
2014
Net Income
₱ 16.22
77
Branches
Target by 2015:
117 Branches
Billion
Nationwide
22
Nationwide Posts
Worldwide
Membership Breakdown
Total Active Membership Distribution
Total = 15,764,422
Employed Pvt Other
HH Working
OFW
4,314,009 24,893 Groups
0.2% 340,061
27%
Employed 2%
Govt
1,989,412
13%
Employed Pvt
9,096,047
58%
More Branches and Satellite Offices
to reach more members
Current Target
2010 2014 2015
38 77 117
22 Posts Worldwide
and expanding
Europe
Remittance
North America Partners: 77
Remittance
Asia Pacific
Partners: 103
Overseas Posts Remittance
Partners: 300
Asia Europ Middle
Pacific e East
Korea London Dubai
Macau Rome Riyadh
Japan Greece Qatar
Hong Milan Abu Middle East
Kong Dhabi Remittance
Taiwan Bahrain Partners: 278
Brunei Al
Malaysia Khobar
Singapor Kuwait
e Oman
Jeddah
United States of
America
Overseas Desks Concentration of OFWs Remittance Partners
New York (New)
Housing Loan Borrowers Per
Membership Category
From January 2010 to September 2015
2%
20%
62%
16%
Employed Private Employed Government
OFW Self-Employed
Updates on Programs
Performing Loans Ratio (PLR)
Corporate-Wide PLR*
87%
80.23%
81.77%
83.27%
10%
INCREASE
80.69%
79.02% 80.89%
*Mortgage/ Sales Contracts Receivables only
2015 Developers Application
for Funding Allocation
Pag-IBIG No. of Approved %
Housing Hub Developers Amount Utilization Utilization
NCR 164 P 19.547 B P 11.621 B 59.45%
North Luzon 96 5.206 B 2.758 B 52.98%
South Luzon 60 5.477 B 4.293 B 78.38%
Visayas 48 4.053 B 1.640 B 59.51%
One Mindanao 74 4.248 B 2.559 B 66.88%
Total 442 P 38.531 B P 23.644 B 61.36%
Note: Actual take out Jan to Oct 2015 : P 33.616 B
Part II – Updates on Existing Housing Loan Guidelines
End-User Home Financing Program
Affordable Housing Program
Institutional Loan Programs
Enhanced Housing Loan Portfolios
End-User Home Financing Program Affordable Housing Program
• Increase in Loanable amount to P6 M • Subsidized rates sourced
• As low as 6.5% p.a. from tax savings
• Risk-based interest rates • Targeted Beneficiaries
• Adoption of a Borrowers Evaluation (minimum wage earners)
System to improve Underwriting
End-User Home Financing Program
Risk-Based Pricing Framework
Interest Rates* adopting of risk-based pricing
(Cir. 310)
3 year-fixing 6.500%
5 year-fixing 7.270%
10 year-fixing 8.025%
15 year-fixing 8.585%
20 year-fixing 8.800%
25 year-fixing 9.050%
30 year-fixing 10.000%
* Effective June 2015
End-User Home Financing Program
Loan-to-Value (LTV) Ratio
Before Now
• Borrower Evaluation • Fixed LTV for developer-
System (BES) determines assisted accounts
applicable LTV: – 100% for loans up to P450K,
– LTV varies from a high 90% provided property under a
to a low of 70% depending socialized housing project.
on BES result (Good, Fair, – 90% for loans up to P 1.700 M
Poor) – 85% for loans over P 1.700 M
Affordable Housing Program (AHP)
Loan Take-out
No. of Units Loan Value
20,218 P 7.4B
Amounts NCR & OFWs Outside NCR
GROSS MONTHLY
INCOME P 15,000 P 17,500 P 12,000 P 14,000
(Maximum)
LOAN AMOUNT
(Maximum)
P50,000 P 750,000 P 450,000 P 750,000
INTEREST RATE* 4.5% 6.5% 4.5% 6.5%
Designed for minimum wage earners,
the AHP caters to the actual need of the
borrower based on his capacity to pay.
Loan amount up to P750K
Interest rate as low as 4.5%*
Institutional Loan Programs
Direct Developmental Loan
Program
Developmental financing for developers under
easier terms and conditions
Loan may be used for the development of
residential subdivision or medium-rise buildings
or for the construction of housing units
Wholesale Loan Rates
1-Year Fixing 6.125%
2-Year Fixing 6.750%
3-Year Fixing 7.875%
as of January 1, 2015
Part III – Approved Housing Loan Guidelines for
Implementation in 2016
Updates on Housing Loan Programs
I. Availment of Multiple Housing Loans (Cir. 353)
The borrower may avail of two or more Housing Loans
at the same time;
The resulting amortization payments for all loans are
within his capacity to pay;
The aggregate loan value should not exceed
P6,000,000.00; and·
Cross-default provision
Updates on Housing Loan Programs
II. Availment of Pag-IBIG Housing Loans for
the Acquisition/ Installation of Solar Panels
Acquisition/installation of solar panels as part of home
improvement or as a component of the housing unit to
be purchased
The loan shall be secured by a collateral that shall
consist of the same residential property to which the
loan proceeds are applied.
Updates on Housing Loan Programs
III. Take Out Mechanism for Developer Assisted Housing Programs
General Loan Documentation
Cir. 344
Cir. 259
Particulars (Approved,
(Existing)
For Implementation)
Documentation
Contract To Sell -
(Buyer & Developers)
Documentation
- Deed of Absolute Sale
(Developers & HDMF)
Documentation Deed of Assignment with Deed of Conditional Sale
(Buyer & HDMF) SPA
Property Title TCT in the name of the TCT in the name of HDMF
Developer with
Annotated DOA with SPA
Updates on Housing Loan Programs
III. Take Out Mechanism for Developer Assisted Housing Programs
Pre-approval Activities
Particulars Cir. 259 Cir. 344
(Existing) (Approved,
For Implementation)
Delivery of Folders to Window 1 and 2 One Window (All accounts to
HDMF Classification be delivered are covered with
NOA)
Borrower’s Validation Borrower’s CI and All accounts must undergo
Validation upon delivery of advance borrower’s CI &
individual loan folders validation
Inspection of individual Upon delivery of individual All properties subject of the
units loan folders loan must undergo advance
inspection
Updates on Housing Loan Programs
III. Take Out Mechanism for Developer Assisted Housing Programs
Post Approval/ For take Out
Particulars Cir. 259 Cir. 344
(Existing) (Approved,
For Implementation)
Documents For Contract To Sell Deed of Absolute Sale
Loan Release (Between Developer & Buyer) (Between Developer & HDMF)
- Deed of Conditional Sale
•Promissory Note Promissory Note
•Disclosure Statement -
•Loan & Mortgage Agreement -
Tax Dec & Receipt in the name of Tax Dec & Receipt in the name
the Developer (H& L) of HDMF (H& L)
TCT in the name of the Developer TCT in the name of HDMF
with Annotated DOA with SPA
Updates on Housing Loan Programs
IV. Classification of Developers and Grant of Incentives (Cir 345)
Approved. For Implementation
REGULAR PRIME RETAIL WINDOW
Available for new ONLY for previously For developer whose
developers and accredited accreditation is
previously accredited developers that suspended
developers passed the
performance
criteria
Updates on Housing Loan Programs
IV. Classification of Developers and Grant of Incentives (Cir 345)
CRITERIA REGULAR PRIME
Complete
DOCUMENTATION CDCR 95% 95%
compliance ratio
UNIT
specifications USCR 90% 95%
compliance ratio
CONVERSION
performance
CP 90% 95%
BUYBACK
(for breach of warranties)
BB No BB No BB
PERFORMING
ACCOUNTS PAR 85% 95%
ratio
Updates on Housing Loan Programs
IV. Classification of Developers and Grant of Incentives (Cir 345)
Particulars REGULAR PRIME
Requirement For TCT in the name of Title in the name of
take Out HDMF the developer
Certificate
Authorizing
Registration
Updates on Housing Loan Programs
V. Implementation of various Housing Loan Guidelines/Circulars
Cir. 247 – repealed last July 1, 2015
Cir. 349 – existing (Interim Guidelines)
Cir. 344 – approved. For 2016 implementation
Transitory Provision
Circular 349 shall continue to be in force for six (6) months from
the date of implementation of Cir. 344
Part IV – Updates on Government-to-Government (G-to-G)
arrangement
Government-to-Government (G- to-G) Transactions
Bureau of Internal Revenue
Finalization of the requirements for the issuance of E-CAR
Finalization in the procedure on the G to G arrangement
System testing completed for pilot areas (Calamba and
Marikina)
For system testing Trece Martires
Timeline - 1st quarter of 2016
Thank you