[ Malaya.com.ph ] October 17, 2011
The Home Mutual Development Fund (Pag-IBIG) has reduced its target loan disbursement for the year at P40 billion out of the P50 billion allocated for 2011.
Darlene Berberabe, Pag-IBIG president, told Malaya Business Insight that based on discussions with developers and a review of available supply in the market, which determines how much financing support buyers will need, "it is realistic to say that I would disburse P40 billion by end of the year."
Pag-IBIG pegged a higher loan takeout budget for the year at P50 billion from the previous year’s P40 billion as the property market experienced robust years the past two years, averaging P4 billion a month in 2009, double the average value of P2 billion a month the years before.
The Globe Asiatique fiasco has forced the agency to institute reforms in its processes resulting in "lower than usual" disbursement.
Pag-IBIG has terminated the authority of developers to approve housing applications and required stricter requirements for loan applicants.
Speaking before developers at a convention Friday, Berberabe said that the agency has disbursed a total of P32 billion from the budgeted housing loan fund, between January and September of the year.
Berberabe also announced Pag-IBIG is reducing the number of days in which loan applications would be processed from 30 days to 20 days and is relaxing requirements for overseas-based borrowers.
Berberabe also clarified Pag-IBIG’s 2011 average monthly loan disbursement of a little over P2 billion is still within the usual amount the agency disburses to loan applicants.
Developers were earlier complaining that, as a result of the change in Pag-IBIG’s loan approval process, the agency’s loan disbursement has dropped to P2.4 billion compared with the 2009 high.
Berberabe, however, said that as that year is a record year for the agency, it would be more prudent to compare Pag-IBIG’s performance with the other normal years where it is disbursing an average of P2 billion a month.