Tag Archives: housing loans

GSIS stops housing loans

Property Guide
Cebu Daily News
May 12, 2011

Bacolod City — The Government Service Insurance System (GSIS) has put its housing loan program on hold as it is faced with total unpaid loans of P11 billion for 17,000 house-and-lot packages nationwide.

“The GSIS means business in protecting the resources of its stakeholders, which may have been abused in the past,” said its chairman, Daniel Lacson Jr.

“The current board and administration have decided to immediately stop additional housing loans until a comprehensive policy and program can be introduced to dispose of all the non-performing assets amounting to P11 billion or more,” Lacson told the Inquirer.

He said the 17,000 properties were now with the GSIS asset and disposal management group for disposal. The GSIS has been providing housing loans since 1954 and over the years has come up with different programs, Lacson said.

In the beginning, the GSIS provided loans to members only but later it began extending loans to developers and then got involved in real estate development, buying land and building houses and selling these as house-and-lot packages, Lacson explained.

In a report to the GSIS board, consultant Mel Alonso said the GSIS did not have adequate manpower to support its various financing activities, which resulted in its failure to collect payments. The GSIS could dispose of its assets through government agencies engaged in housing programs, banks or private developers, Alonso said.

“In short, the board wants closure in terms of policy with regard to the housing program as well as other activities of the GSIS currently having difficulties,” he said.

The GSIS, meanwhile, has foreclosed on a 5-hectare private cemetery in Hinigaran, Negros Occidental, following its owner’s failure to pay a P17-million loan, Lacson said.

The estate of Jose and Rosario Echauz used the P17 million loan obtained in 1999 to develop the property. When it was granted the loan, the Echauz estate promised to create a corporation with a paid-up capital of P25 million but when it registered the firm with the Securities and Exchange Commission, the paid-up capital was only P312,500, Lacson said. /INQUIRER

Pag-IBIG set to double contributions

ManilaStandard Today
by Elaine R. Alanguilan
November 22, 2010

THE state home-financing fund plans to increase its membership dues by as much as 200 percent to boost its services to members, an official said over the weekend.

The fund’s previous board approved the increase in January last year, but it did not implement it because of opposition from some quarters who had described the increase as too high, said Edgardo Lacson, director of the Home Development Mutual Fund or Pag-IBIG Fund.

“Higher dues are necessary as this would allow us to extend more housing loans as we expand the membership of the Fund,” Lacson said.

“There is a substantial backlog, particularly among the overseas Filipino workers and among the uniformed services, and we have to beef up our resources to amply cover a bigger number of members.”

Lacson said there were now 10 million Filipinos working abroad, but not even 1 percent were fund members. The fund aimed to enroll 85,000 new members this year to bring its total membership to 570,000 by the year’s end.

The Pag IBIG fund’s charter says 70 percent of its resources must be used to finance its housing loan program through which members may avail themselves of up to P3 million in housing loans.

Loan takeout has been increasing following the fund’s reduction of its interest costs to provide more housing. But the housing backlog is still over a million units even if the fund’s members pay P40 billion in dues each year.

“A 200-percent increase in membership fees would have been ideal … to address the needs of our members, but higher fees would be a deterrent. We want any increase to be as minimal as possible,” Lacson said.

“We are now looking at liquidating our non-performing loans amounting to billions of pesos to allow for a smaller increase in membership dues.”

Lacson said the fund was still updating its accounts and identifying more assets that could be auctioned off next year.