Available Financing Programs for Developers and Home Buyers

Transcription

1 Available Financing Programs for Developers and Home Buyers Atty. Darlene Marie B. Berberabe President & CEO, Pag-IBIG Fund 24 th Annual CREBA National Convention 8 October 2015 Bacolod City

2 Available Financing Programs for Developers and Home Buyers I. Twin Mandates of Pag-IBIG Fund II. Your Pag-IBIG Today III. Financing Programs for Developers IV. Direct Developmental Loan Program (DDLP) Group Housing Loan Program (GHLP) Yolanda Housing Development with Special Rates Financing Programs for Home Buyers End-User Home Financing Program Affordable Housing Loan Program Employer Accreditation Program (EAP) Pag-IBIG Led Housing V. Updates on Pag-IBIG Fund Programs Loan-to-Value Ratio (LTV) Appraisal Policy Improved Documentation Improved Insurance Benefits Revised Remediation Process Improved PL Ratio Partnership with LRA Partnership with BIR VI. Key Reforms New Look for branches ISO Certification 100% Passed CSC ARTA Survey COA back-to-back Unqualified Opinion

3 Twin Mandates of Pag-IBIG Fund Pag-IBIG Fund Pag-tutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno. PROVIDENT SAVINGS To establish, develop, promote, and integrate a nationwide sound and viable tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups; and SHELTER FINANCING To motivate them to better plan and provide for their housing needs, by membership in the HDMF, with mandatory contributory support of the employers in the spirit of social justice and the pursuit of national development Mandatory membership for Filipino workers earning at least PHP1,000 a month

4 Your Pag-IBIG today Dividends 15.6 Million Members B 85 Branches Nationwide Total Assets 23 Posts Worldwide B Membership Savings Target by 2015: 117 Branches Nationwide Billion Highest in the Fund s 34-year History 2014 Net Income Billion

5 Financing Programs for Developers Developmental Financing - HDMF funds the construction - Staggered loan release based on schedule of development - Loan purpose similar to House Construction loan Whole Sale Lending Programs - Direct Developmental Loan [HDMF Circular No. 329 (Amended)] - Group Housing Loan Program [HDMF Circular No. 293] Special Projects for Yolanda Survivors - Up to P180 Million loanable amount - 3% interest rate per annum for 3 years - End-User interest rate is 4% per annum for 24 months (1 st 6 months interest-free)

6 Financing Programs for Developers Direct Developmental Loan Program (DDLP) For developers who own the land but need funding for land development and house construction or completion of a condominium project Loan up to P250 million for Horizontal Development Loan up to P500 million for Vertical Development Loan Term: Three (3) Years

7 Comparison of the New & Old Guidelines for Direct Developmental Loan Program (DDLP) Interest Rate Before (Circular No. 253) 3-yr Treasury Notes plus 3% 91-day Treasury Bills plus 5% In all cases, the resulting interest rate shall not be lower than 8.5% Now (Circular No. 329) Full Risk-Based Pricing 6.125% - 1 yr fixed 6.750% - 2yrs fixed 7.875% - 3yrs fixed Loan Amount Maximum of P100M for horizontal development per project and P200M for vertical projects Maximum of P250M for horizontal development per project and P500M for vertical projects

8 Financing Programs for Developers Group Housing Loan Program (GHLP) Cir. 293 For project proponents who need funding for the acquisition of land as project site and/or its development Horizontal Development: Loan up to P20 M per phase or 40% of construction cost Vertical Development: Loan up to P40 M per building or actual cost of the building Project Proponents Local Government Units Employers Employees Associations Cooperatives

9 Group Housing Loan Program Sarangani Housing Project Features: Land provided by Provincial Government of Sarangani Joint Venture between Sarangani Provincial Government and developer Total Housing Units: 180 Price Range: Php 435,000 to Php 575,000

10 Financing Programs for Home Buyers

11 Financing Programs for Home Buyers End-User Home Financing Program (EUHF) Loan amount up to P6 Million Interest rate as low as 6.5%* Multiple housing loan allowed 43% REDUCTION As High as 11.5% 6.5%* per annum DOUBLED LOANABLE AMOUNT from 3M to 6 M Sample Amortization Table

12 Financing Programs for Home Buyers Affordable Housing Loan Program (AHLP) Designed for minimum wage earners, the AHLP 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%* Multiple housing loan allowed Amounts NCR & OFWs Outside NCR GROSS MONTHLY INCOME (Maximum) LOAN AMOUNT (Maximum) No. of Units 16,315 Loan Take-out (2014) Loan Value P 6B P 15,000 P 17,500 P 12,000 P 14,000 P 450,000 P 750,000 P 450,000 P 750,000 INTEREST RATE* 4.5% 6.5% 4.5% 6.5%

13 Financing Programs for Home Buyers Employer Accreditation Program (EAP) Partnership of Pag-IBIG and employers open up housing opportunities for employees Employers enjoy: - prequalification of its employees - faster processing time of loan applications - quick access to other Pag-IBIG housing services 40 Employers Accredited (as of August 2015) 24 Private Employers 7 National Government Agencies 6 State Universities/ Colleges 1 Associations 1 Cooperatives 1 LGU

14 Financing Programs for Home Buyers Pag-IBIG Led Housing Projects Address mismatch between available housing inventories and the members requirement (home/needs matching) Tackle affordability issues, thus, promoting home ownership Provide access to decent housing of our members in the unserved and underserved areas and sectors Provide additional housing inventories for members in the economic zones, university belts and in other locations where greater portions of the unserved and underserved members are situated

15 Pag-IBIG Led Housing Projects Hanjin Employee Village Castillejos, Zambales Features: Employer provided land Employee salary deduction Lowered interest rate Employee retention program Price Range: P399 K to P599 K Appraised Value: P601 K to P961 K

16 Features: Partnership with Habitat and LGU Beneficiaries are Teachers and Informal Settler Families Low interest rates Pag-IBIG Led Housing Projects Price Range: P462 K to P511 K Appraised Value: P312 K to P361 K Bistekville I Barangay (Village) Payatas, Quezon City

17 Updates on Programs Loan-to-Value (LTV) Ratio Before Borrower Evaluation System (BES) determines applicable LTV: Now Fixed LTV for developer-assisted accounts LTV reduced by as much as 10%, depending on BES result As low as 70% LTV for borrowers with POOR results 100% for loans up to P450K, provided property is in a socialized housing project. 90% for loans up to P1.25 M 85% for loans over P1.25 M

18 Updates on Programs Appraisal Policy Enhanced Appraisal Manual Premium Pricing of up to 20 % for top developers 10 % premium for projects advocating eco-sanitation 5% mark-up for projects that use solar power or any energy-efficient lighting system 5% premium for projects adopting landscape waste minimization in accordance with green-technology Approved on 10 December 2014

19 Updates on Programs Improved Documentation Before Pre-Takeout Activities Execution of CTS between Developer and buyer Annotation of Deed of Assignment of CTS Post-Takeout Activities Cancellation of Assignment Transfer of Title in the name of the borrower Annotation of Loan and Mortgage Agreement Now Pre-Takeout Activities Execution of Deed of Absolute Sale (DOAS) between Developer and the Fund Transfer of Title in the name of the Fund Execution of Deed of Conditional Sale (DCS) between the Fund and the buyer* Marital consent not needed NO Post-Takeout Activities *Execution of DCS between the Fund and the buyer process time Loan Approval and Loan Takeout (Working Days) Before Now W Loan Approval (Working Days) Loan Takeout (Working Days) Before Now Before Now W W

20 Updates on Programs More Insurance Benefits Improved Insurance for Housing Loan Borrowers Insurance Premium cut by almost 50% Features Before (YRT Insurance Pool) Now (Lockton Philippines and Reinsurance Brokers, Inc.) Premium Rates 41 per P1, per P1,000 Burial Benefit None Up to P20,000 Effect of Total Permanent Disability None Full payment of loan Effect of terminal illness None Amortization support up to P500,000 Experience Refund None 20% of the insurer s profit to be refunded to the insured OFW Premium Additional P2 per P1,000 None Medically Sub-standard Premium With additional premium None Claims Processing Within 30 days Within 24 hours

21 Updates on Programs Revised Remediation Process Preliminary Remediation Final Remediation Foreclosure Endorse for Tele-Collection Endorse to Collection Agencies Endorse for Final Remediation Endorse for Foreclosure & Acquired Assets Dept. 1-4 months* 4-9 months OVER 9 months OVER 11 months Specialized phone call Sending of SMS Sending of Skip Tracing Specialized phone call Skip Tracing Address verification Field collection/ door to door Issuances of Notices Negotiation 2-Cycle Endorsement Preparation of Notice of Cancellation (CTS Accounts) Preparation of Final Demand Letter (REM Accounts) FORECLOSURE: File for EJF Schedule for Auction Secure COS Register COS * Months Past Due

22 Updates on Programs Performing Loans Ratio (PLR) Corporate-Wide PLR* 87% 79.02% 80.23% 81.77% 80.89% 83.27% 80.69% 10% INCREASE *Mortgage/ Sales Contracts Receivables only

23 Updates on Programs Pag-IBIG LRA Linkage Project Adoption of 2D Barcode System Faster Issuance of CTC Before: 2 weeks Now: 20 min. 2 days

24 Updates on Programs Partnership with BIR CAR issuance PROCESSING TIME EXPECTED TO BE REDUCED BY 50%

25 Key Reforms Pag-IBIG Branches New Look Previous Look Initial Branches With One-Look Taguig (SM Aura) Binondo (Lucky Chinatown Mall) Guadalupe Palawan

26 Key Reforms Pag-IBIG maintains ISO 9001 certification All NCR branches now ISO-certified

27 Key Reforms 2014 ANTI-RED TAPE SURVEY 100% PASSING RATE Pag-IBIG is the only government agency with back-to-back 100% passing rate in 2013 and 2014 surveys

28 Key Reforms COA S UNQUALIFIED OPINION 3-PEAT!

29 Available Financing Programs for Developers and Home Buyers I. Twin Mandates of Pag-IBIG Fund II. Your Pag-IBIG Today III. Financing Programs for Developers IV. Direct Developmental Loan Program (DDLP) Group Housing Loan Program (GHLP) Yolanda Housing Development with Special Rates Financing Programs for Home Buyers End-User Home Financing Program Affordable Housing Loan Program Employer Accreditation Program (EAP) Pag-IBIG Led Housing V. Updates on Pag-IBIG Fund Programs Loan-to-Value Ratio (LTV) Appraisal Policy Improved Documentation Improved Insurance Benefits Revised Remediation Process Improved PL Ratio Partnership with LRA Partnership with BIR VI. Key Reforms New Look for branches ISO Certification 100% Passed CSC ARTA Survey COA back-to-back Unqualified Opinion

30 Thank You! Available Financing Programs for Developers and Home Buyers Atty. Darlene Marie B. Berberabe President & CEO, Pag-IBIG Fund 24 th Annual CREBA National Convention 8 October 2015 Bacolod City