Top officials of Pag-IBIG Fund on Wednesday (Aug.19) assured borrowers that the agency’s loan policies are designed to help them keep their homes, especially during the pandemic.
“We heed President Duterte’s call to prioritize the welfare of our fellow Filipinos during these challenging times. We want to help members keep their homes, especially now because that is the safest place they can be. Pag-IBIG Fund extends favorable terms to our home loan borrowers. We give them several remedies to save their properties in case of default. Our remediation process also gives borrowers at least one year to update their accounts,” said Secretary Eduardo D. del Rosario, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.
According to del Rosario, home loan borrowers who may encounter financial difficulties as a result of the pandemic can avail of Pag-IBIG Fund’s loan restructuring and penalty condonation programs. The programs are meant to help borrowers update their loans and avoid foreclosure.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti added that unlike most financial institutions, Pag-IBIG Fund’s rules on penalty are more compassionate towards borrowers. The agency computes penalties based only on unpaid dues instead of the outstanding loan balance.
“Due to the economic slowdown, we expect to see default rates climb in the next few months. We want to assure our borrowers that we take into consideration their unexpected loss of income as a result of the pandemic. We at Pag-IBIG Fund remain committed to enable Filipino workers not only to buy homes, but to keep their homes. COVID-19 will not change that,” said Moti.
In the first half of the year, Pag-IBIG Fund deferred more than P15 billion in total loan payments when it granted an automatic grace period to all its 4.77 million borrowers, in accordance with the Bayanihan to Heal as One Act and its Implementing Rules and Regulations.
The agency also granted qualified borrowers a three-month loan payment moratorium from March 16 to June 15, 2020, giving them longer reprieves without incurring additional penalties and other charges.