PGMA signed into law a measure that helps delinquent housing loan borrowers
LUISIANA, Laguna – President Gloria Macapagal Arroyo signed into law the Housing Loan Restructuring and Condonation program Monday morning at a barangay here to give relief to families that are in danger of losing their homes due to their delinquent payment of their loans.
Accompanied by Vice President Noli de Castro, some government stalwarts and local executives, Arroyo signed the Republic Act No. 9507 otherwise known as An Act to Establish a Socialized and Low-Cost Housing Loan Restructuring and Condonation Program, in the presence of about a thousand of cheering villagers, government workers, students, folks at Sitio Dapi, Brgy San Jose in this town.
The president also spearheaded the Energicization (Electrification) Ceremony of three Sitios: Namely Sitio Dapi, Luisiana town; Sitio San Francisco, Bubucal,Brgy Macatad, siniloan town; and Sitio Mayputat, Brgy Libis ng nayon, Mabitac town.
The Chief Executive together with De Castro and government officials also inaugurated the newly constructed Tibatib
Bridge in Brgy Tibatib, Cavinti town before proceeding to Caliraya Resort from which she was expected to leave for
Manila.
At Sito Dapi the Chief Executive with the assistance of Vice Pres. Noli de castro also spearheaded the lowering of the time capsule of the proposed low-cost housing site in sitio Dapi. PGMA also distributed millions worth of checks for
scholarship fund, low-cost housing, local cooperatives and assistance to Local Government Unit projects.
The new low aims to help low-income families not to lose their homes due to difficulties in paying for their housing loan amortizations. Under the program, housing loan borrowers who have at least three months of unpaid monthlt amortizations with government financial institutions and hosing agencies may apply for loan restructuring and condonaton.
The law covers housing loan accounts with institutions like GSIS, SSS, Pag-ibig fund, National Home Mortgage Finance Corporation, Social Housing Finanace Corporation, Home Guarantee Corporation at Mational Housing Authority with principal loan amounts not exceeding 2.5 million pesos. The program is open even to accounts that are already availed of a previous restructuring a.d condonation program. All penalties and surcharges of a loan approved for restructuring under this program shal be condoned. A reasonable portion of te accrued interest may also be
condoned at the discretion of the respective of the concerned GFI’s or Housing Agencies.
The remaining accrued interest will be treated as a non-interest bearing principal to be equally paid during the term of the restructured loan The restructured loan will also be charged an interest rate equal to that of the original loan, or more than 12%,whichever is lower.
To further lower the monthly amortizations, the payment period may be extended up to the borrowers 70th year. No processing fees or downpayment shall be paid to apply for loan restructuring and condonation. The program will be implemented for 18 months from the issuance of the implementing rules and reglations, but the governing boards of the respective institutions are given the authority ti continue the program beyond that period.
An inter-agency committee composed of the concerned GFI’s and agencies and headed by the Housing and Urban Development Coordination Council is tasked to promulgate the IRR within 60 days from the signing of the law. Concurrent HUDCCchairman and Vice President Noli de Castro committed to issue the IRR as soon as possible.
President Arroyo lauded the timeliness of the law for the nearly 370 thousand families with delinquent loans especially during this time of Global economic crisis.
Meanwhile De Castro assured that the law will not threaten the financial stability of the concerned institutions and agencies as there are specific provisions that will safeguard the program from abuse. He also emphasized that the law empowers the governing boards of lending institutions to give reasonable discounts on loan interest as an incentive to borrowers who pay their amortizations on time.
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