Atty. Darlene Marie B. Berberabe

President & CEO, Pag-IBIG Fund

24th Annual CREBA National Convention

8 October 2015

Bacolod City

Available Financing Programs

for Developers and Home Buyers

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

• Direct Developmental Loan Program (DDLP)

• Group Housing Loan Program (GHLP)

• Yolanda Housing Development with Special Rates

IV. 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

Twin Mandates of Pag-IBIG Fund

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

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

PROVIDENT

SAVINGS

SHELTER

FINANCING

Mandatory membership for Filipino workers

earning at least PHP1,000 a month

Pag-IBIG FundPag-tutulungan sa kinabukasan: Ikaw, Bangko,

Industriya, at Gobyerno.

Your Pag-IBIG today

Dividends

₱379.25 BTotal Assets

2014

₱11.34Billion

Highest in the Fund’s34-year History

Net Income

₱16.23Billion

2014₱28.07 BMembership Savings

2014

15.6 MillionMembers

Target by 2015:

117 BranchesNationwide

85Branches

Nationwide

23Posts

Worldwide

Developmental Financing- HDMF funds the construction

- Staggered loan release based on schedule of development

- Loan purpose similar to House Construction loan

Financing Programs for Developers

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 (1st 6 months interest-free)

• 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

Direct Developmental Loan Program (DDLP)Financing Programs for Developers

Before

(Circular No. 253)

Now

(Circular No. 329)

Interest Rate

• 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%

• Full Risk-Based Pricing6.125% - 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

Comparison of the New & Old Guidelines for

Direct Developmental Loan Program (DDLP)

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

Financing Programs for Developers

• Project Proponents Local Government Units

Employers Employees’Associations

Cooperatives

Sarangani Housing ProjectGroup Housing Loan Program

Total Housing Units:

180

Price Range:

Php 435,000 to

Php 575,000

Features:

• Land provided by Provincial

Government of Sarangani

• Joint Venture between

Sarangani Provincial

Government and developer

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

6.5%*per annum

As High as 11.5%

43%REDUCTION

from ₱3M to

₱6 M

DOUBLED

LOANABLE AMOUNT

Financing Programs for Home Buyers

Sample Amortization Table

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 NCRGROSS MONTHLY

INCOME(Maximum)

P 15,000 P 17,500 P 12,000 P 14,000

LOAN AMOUNT

(Maximum)P 450,000 P 750,000 P 450,000 P 750,000

INTEREST RATE* 4.5% 6.5% 4.5% 6.5%

Affordable Housing Loan Program (AHLP)

Loan Take-out (2014)

No. of Units

16,315Loan Value

P 6B

Financing Programs for Home Buyers

40 EmployersAccredited

24 Private Employers

7 National Government Agencies

6 State Universities/ Colleges

1 Associations1 Cooperatives1 LGU

(as of August 2015)

Employer Accreditation Program (EAP)Financing Programs for Home Buyers

• 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

• 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

Pag-IBIG Led Housing ProjectsFinancing Programs for Home Buyers

Price Range:

P399 K to P599 K

Appraised Value:

P601 K to P961 K

Features:• Employer provided land

• Employee salary deduction

• Lowered interest rate

• Employee retention program

Hanjin Employee VillageCastillejos, Zambales

Pag-IBIG Led Housing Projects

Bistekville IBarangay (Village) Payatas, Quezon City

Price Range:

P462 K to P511 K

Appraised Value:

P312 K to P361 K

Features:

• Partnership with Habitat and LGU

• Beneficiaries are Teachers and Informal Settler Families

• Low interest rates

Pag-IBIG Led Housing Projects

Before• Borrower Evaluation System (BES)

determines applicable LTV:

– LTV reduced by as much as 10%,

depending on BES result

– As low as 70% LTV for borrowers with

POOR results

Now

• Fixed LTV for developer-assisted

accounts

– 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

Loan-to-Value (LTV) RatioUpdates on Programs

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

Appraisal PolicyUpdates on Programs

Improved DocumentationUpdates on Programs

Before Now• 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

• 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

Loan Approval

(Working Days)

Loan Takeout

(Working Days)

Before Now Before Now

W2 15 14 5 3

W3 20 17 5 3

Loan Approval and Loan Takeout

(Working Days)

Before Now

W1 10 9

*Execution of DCS between the Fund and the buyer process time

Features Before(YRT Insurance Pool)

Now(Lockton Philippines and Reinsurance Brokers, Inc.)

Premium Rates 41¢ per P1,000 23¢ per P1,000

Burial Benefit None Up to P20,000

Effect of Total Permanent

DisabilityNone Full payment of loan

Effect of terminal illness None Amortization support up to P500,000

Experience Refund None20% 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

More Insurance Benefits

Insurance Premium cut by almost 50%

Improved Insurance for Housing Loan Borrowers

Updates on Programs

Preliminary RemediationFinal

RemediationForeclosure

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 Email

•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

Revised Remediation Process

* Months Past Due

Updates on Programs

Corporate-Wide PLR*

Updates on Programs

Performing Loans Ratio (PLR)

79.02%

80.23%

81.77%

80.89%80.69%

83.27%

87%

*Mortgage/ Sales Contracts Receivables only

10%INCREASE

Faster Issuance of CTC

Before: 2 weeks

Now:20 min. – 2 days

Pag-IBIG – LRA Linkage Project

Adoption of 2D Barcode System

Updates on Programs

Partnership with BIR

REDUCED BY

PROCESSING TIME

50%

CAR issuance

EXPECTED TO BE

Updates on Programs

Taguig (SM Aura)

Binondo (Lucky Chinatown Mall)

Guadalupe

Palawan

Initial Branches

With

“One-Look”

Previous Look

Key ReformsPag-IBIG Branches’ New Look

Pag-IBIG maintains

ISO 9001 certification

All NCR

branches now

ISO-certified

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

Key Reforms

COA’S

UNQUALIFIEDOPINION

2012 2013

Key Reforms

2014

3-PEAT!

I. Twin Mandates of Pag-IBIG Fund

II. Your Pag-IBIG Today

III. Financing Programs for Developers

• Direct Developmental Loan Program (DDLP)

• Group Housing Loan Program (GHLP)

• Yolanda Housing Development with Special Rates

IV. 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

Available Financing Programs

for Developers and Home Buyers

Atty. Darlene Marie B. Berberabe

President & CEO, Pag-IBIG Fund

24th Annual CREBA National Convention8 October 2015

Bacolod City

Available Financing Programs

for Developers and Home Buyers

Thank You!