06/15/2008 [ tribune.net.ph ]
Following the relentless appeal by Speaker Prospero Nograles, an Asian Development Bank-funded holding company set up and owned by the government’s home financing agency has committed to negotiate with more than 50,000 borrowers in restructuring their delinquent housing accounts, stressing that foreclosure would be considered only as a last resort.
This commitment was made during an initial congressional inquiry conducted by the Committee on Housing and Urban Development headed by Rep. Rodolfo Valencia on the reported “massive foreclosures” of low-cost housing units made public by Nograles through House Resolution 604.
Valencia said the Balikatan Housing Finance Inc. (BHFI), to which the National Home Mortgage Finance Corp. (NHMFC) transferred thousands of delinquent loan accounts, would first put priority on negotiations with the borrowers on workable solutions to settle their accounts.
“The BHFI assured the committee it will take into consideration all possible options so the borrowers would be able to amortize their restructured loans,” he added.
Nograles has been pushing hard a moratorium on all foreclosures of delinquent low-cost and socialized housing loans as most Filipinos are in dire financial situation due to the spiraling cost of goods and services worldwide.
“We have to be more compassionate, especially at this time when most people can hardly afford three square meals a day. We should not remove the roofs on their heads,” the House leader stressed.
Nograles filed House Resolution 604 upon learning that around 52,000 low cost and socialized housing units are being foreclosed by BHFI which
which acquired delinquent loan accounts from the NHMFC.
The Speaker, however, said he is now relieved with the fresh assurance of the BHFI that it would work to restructure most of the delinquent loans and suspend foreclosure proceedings.
“This is good news. At least now, we have 50,000 families who have been relieved from the constant threat of being ejected from their homes,” Nograles, author of the l998 Housing Loan Condonation Act (RA 8501), said.
He maintained that foreclosures of low cost and socialized housing units will only push thousands of Filipino families back to the slums, thereby aggravating the country’s problem on the growing number of informal settlers particularly in urban areas.
During the initial hearing conducted by Valencia’s committee, the Alliance of Homeowners (A-Homes) informed the panel that the loan accounts of its members were transferred from the NHMFC to the BHFI without prior consultation.
A-Homes added its members could not afford the high downpayment and that their respective properties are now facing foreclosure proceedings.
Another homeowners group, Kapitbahayan, appealed that those affected should be allowed to restructure their loans and should be given a lower interest rate on their loans. It also recommended the option for NHMFC to buy back the accounts.
The NHMFC clarified before the House panel that part of its disposition strategy for its non-performing loans under the Unified Home-Lending Program portfolio was to dispose accounts classified as highly delinquent to be able to pay its funders – the Social Security System (SSS), the Pag-IBIG Fund and the Government Service Insurance System, which extended loans amounting to P42 billion.
It added from 1988 to 2003, NHMFC paid its funders some P40.4 billion but still had a balanc4 of P53.2 billion including interests.
Also, it entered into a joint venture with the DB Global Opportunities and formed the BHFI to which it sold 52,000 accounts, translating to around P32 billion.
NHMFC added the projected collectibles from its 44-percent share in BHFI would amount to P3.68 billion.
The BHFI engaged the services of the Bahay Financial Services (BFS) to manage the acquired accounts.
The BFS stated that of the 52,000 account under its management, it had reached some 47,740 borrowers for possible loan restructuring through an “appraisal-based” refinancing.
Earlier, HBs 89, 411 and 1932 were filed separately by the Speaker himself followed by Representatives Eduardo Zialcita and Rozzano Rufino Biazon, all seeking relief for delinquent homeowners.
All three bills seek to institute a restructuring program for delinquent housing accounts with housing agencies and government financing institutions.
Nograles and his co-authors are pushing the restructuring and the condonation of all penalties and surcharges of delinquent housing loans.
The Speaker is also seeking to condone a reasonable portion of the accrued interests, make the remaining accrued interests a non-interest bearing principal, and impose a low 6-percent interest on the original principal.
Charlie V. Manalo
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