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Pag-IBIG, LRA deal to speed up processing of housing loans

10/06/2011 [ ]

Pag-IBIG Fund and the Land Registration Authority (LRA) target to issue new guidelines for the faster processing of documents and loans through a government-to-government (G-to-G) transaction by November and expects it to be on stream after six months it has been approved.

Pag-IBIG Fund CEO Darlene Marie Berberabe said Pag-IBIG Fund and LRA are currently under a memorandum of understanding and are looking at the possibility of a G-to-G transaction which will link up systems. She added that they are hopeful that in the next three months that they will come up with something.

She noted that one factor for the implementation of the G-to-G transaction is the computerization of Pag-IBIG and of LRA. Currently, Pag-IBIG is undergoing computerization with some processes that are already computerized and they are targeting full computerization by third quarter of 2012. For its part, LRA Administrator Eulalio Diaz III said the agency is currently implementing computerization.

Berberabe said the six-months period after approval is to give agencies and developers transition period to ready all their documentation. The guidelines will be approved by the Board of Pag-IBIG Fund.

Once connected, Diaz said those who will apple will not have to bring the hard copies documents to one office from another. “What we’re trying to prevent is the necessary time wasted, simplified lahat ng process-forms, flow of work at the same time wala ng manual intervention at error. In a way it’s safer and more convenient for both offices. Transparency also, open it to everybody, everyone will be able to track it,” he said.

Through a G-to-G transaction, the processing time that takes 30 days based on experience will be down to 10 days. “We are really looking at that opening. If we can reduce that to G-to-G transaction, it will be faster and developers will have to deal with one agency,” Berberabe said, noting that LRA and Pag-IBIG Fund had at least three meetings already.

Meanwhile, Diaz said the agency and Pag-IBIG Fund are currently in the middle of drafting an agreement which will hopefully cut down the processing time for both offices. He added that they are in agreement to involve private sector to make warranties to submit to these offices.

He noted that delays in the processing of Pag-IBIG loans might be caused by lacking documents, documents that are submitted in different forms and different contents. “We hope to standardize everything, because in computerization, we don’t need much entry. We will simplify the documents that we need to be annotated that will cut down processing time by 50 percent,” Diaz said.

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