Thursday, June 4, 2009 [ sunstar.c om.ph ]
CITY OF SAN FERNAND -- Small players in real estate and housing development industry in the province have decried the alleged “favors” being accorded their “bigger and more privileged” counterparts in take-out loans and processing of applications by the Home Mutual Development Fund (HDMF) office here.
The group of small to medium developers, who asked not to be named, told Sun.Star Pampanga in an interview during the North Luzon Group Developers’ Forum held at Holiday Land here that the HDMF has been allegedly granting “favors” to big developers like Xevera, allowing them ease in take-out loans peaking to as much as P100 million one time and fast processing of about seven days to go with it.
Much of the concerns of the developers were brought up during the afternoon open forum with HDMF officials, led by vice president (VP) for Wholesale Lending Juanito Eje, senior vice president (SVP) for Housing Operations Rafael Odes Abaño, SVP for Provident Funds Ophelia Dela Cerna and VP for Loans Recovery Yolanda Akol who clarified the issues.
“With us small time players, it takes us about 90 days to have a loan of P1 million processed. With other big players, they can take out loans of more than P50 million to as much as P100 million even without annotation,” a member of the group said.
The self-claimed spokesperson of the group added that other development projects in the province are suffering because of this and that they fear it will eventually be the Pag-Ibig members who would suffer eventually.
“It’s very difficult with us. From appraisal, processing to annotation of documents, we feel they are favoring our bigger counterparts. Many homeowners from these projects have been approaching us for help while complaining that they were ‘blinded’ by supposed to be prime housing developments for the low income earners,” the spokesperson said.
Another member of the group told Sun.Star Pampanga that they have been wondering why all these, including issues on disposable income, a requirement for the awarding of a socialized housing loan, goes by the HDMF with ease.
“It’s just not fair,” the group said, adding “many of our applicants have turned sour upon knowing they don’t have that much income for a loan and that it cannot be granted to them through us. They just can’t afford the high interest rates of banks at 18 percent compared to HDMF’s 6 percent. But what can we do when we cannot go through the agency’s strict compliance requirements enforced to us? Better the big ones who are granted favors.”
But HDMF chief executive officer Jaime Fabiaña said it is not so.
“The HDMF favors no one. We have received complaints on these, yes. But what may be unclear to them is we actually have two “windows” here. Window 1 is for developers with a track record and quality accounts and those without cease and desist orders from the court. Take out loans for such developers could really peak to as much as P100 million. Our standard processing time is just really seven days on the premise that documents are complete,” Fabiaña told Sun.Star Pampanga.
Under the terms of window 1, developers are obligated to “buy back” the property within five years, much like in the case of Xevera. It also depends on the loans to use ratio as mandated by law.
“Window 2 is something special because a developer, especially new ones, have to make obligations, define them and properly identify the buy back period if ever something goes amiss with the account. That is why it takes longer sometimes because we have to scrutinize the applications. It’s also for the protection of the developer and the member-applicant,” Fabiaña said.
“You know, that is why a forum like this is essential. It opens up communication between us and our developers,” he said.
Fabiaña vowed to clear the issues and grievances of the small developers while dismissing allegations that Vice-President Noli de Castro has been “meddling” for the sake of the big players.
“The VP has the blessing of every developer, big or small. It’s not true he is favoring choice developers,” Fabiaña said. (Jovi T. De Leon)
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