Pag-IBIG Fund has assured borrowers that its loan policies are designed to help them keep their homes, especially during the coronavirus disease 2019 (COVID-19) pandemic, according to housing czar Eduardo del Rosario.
“We heed President Rodrigo 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,” he said.
“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,” he added.
Del Rosario is the Department of Human Settlements and Urban Development secretary and head of the 11-member Pag-IBIG Fund Board of Trustees.
Home loan borrowers who may encounter financial difficulties as a result of the pandemic could avail of Pag-IBIG Fund’s loan restructuring and penalty condonation programs, he said.
The programs are meant to help borrowers update their loans and avoid foreclosure, he noted.
Acmad Rizaldy Moti, Pag-IBIG Fund chief executive officer, said unlike most financial institutions, Pag-IBIG Fund’s rules on penalty are more compassionate toward the borrowers.
The agency computes penalties based only on unpaid dues instead of the outstanding loan balance, he added.
“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,” he stressed.
During the first half of the year, Pag-IBIG Fund deferred over 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.