Pag-IBIG collects P30B in home loan payments
Credit to Author: The Manila Times| Date: Fri, 02 Aug 2019 16:33:45 +0000
THE Home Development Mutual Fund (Pag-IBIG Fund) reported on Friday that its collection of housing loan payments rose by double digits in the first half of the year.
In a statement, the state-run agency said these payments amounted to P30.44 billion, a 12-percent increase from the P27.22 billion collected in January to June 2018.
“We were able to sustain our momentum from 2018, which is our best year yet. In the first half of 2019, home loan payments averaged P5.07 billion [a] month, which is considerably higher than the P4.53-billion average last year,’ said Secretary Eduardo D. del Rosario, who heads the Housing and Urban Development Coordinating Council and the Pag-IBIG Fund Board of Trustees, in the statement.
“In fact, we were off to a good start in 2019, because while we experienced slumps in the start of previous years, home loan payments in January amounted to P5.40 billion. And just this May, home loan payments totaled 5.99 billion — the highest so far this year.
Robust collections reinforce Pag-IBIG Fund’s financial sustainability,” he added.
“The amount we collected are then plowed back to our housing portfolio, so that more members can avail [themselves] of a home loan from Pag-IBIG Fund. This is our way of heeding President Rodrigo Roa Duterte’s call to address the growing housing needs of Filipino workers.”
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said that, because of the improvements in its collection efficiency, his agency was able to reach a record-high performing loans ratio (PLR).
As of June, PLR stood at 90.60 percent — the highest in the Fund’s history. In 2012, PLR stood at a low 75 percent. But the Fund improved its portfolio over the years until it reached 90 percent for the first time in 2017. PLR further improved to 90.23 percent in
2018 and reached a record high in the first six months of 2019.
“Our portfolio is unique in the sense that we cater to minimum-wage earners, who are usually unserved by most lending institutions because of their financial situation,” Moti said.
“Despite this, we are happy to report that our efforts to maintain efficiency of collections enabled us to keep our performing loans ratio at above 90 percent. The high PLR shows that nine out of 10 of Pag-IBIG Fund’s home-loan borrowers regularly pay their monthly amortizations, which is a vast improvement compared to previous years. This is the result of both the reforms we have put in place and the growing appreciation of the Fund’s home-loan programs among borrowers,” he added.
“The regular payment of monthly amortizations is key in the Fund’s mission to provide both accessible and sustainable home financing to members who need it most.”