MANILA, Philippines (Mindanao Examiner / August 14, 2008) – The long-awaited House bill, which would save some 368,535 delinquent loan borrowers from losing their mortgage, is now on its final stage of becoming a law as the bicameral conference panels of the Congress and the Senate started its deliberation on the proposed three-year housing loan restructuring program.
Upon the instruction of House Speaker Prospero Nograles, who championed for the bill since 1998, the House bicameral panel led by Housing and Urban Development chairman Rodolfo Valencia is pushing hard for its final approval in the next two weeks.
In his report, Valencia told Nograles that the bicameral conference committee will meet again next week to reconcile all minor differences between the Senate and House versions of the proposed “Socialized and Low Cost Housing Loan Restructuring Act of 2008.”
The immediate enactment of the loan restructuring bill is a timely relief for loan borrowers whose houses are in danger of foreclosure in the face of economic difficulties the Philippines is going through.
Nograles, who is himself principal author of the House-approved HB 4220 with Valencia and Housing vice chairman Paranaque Rep. Eduardo Zialcita, stressed the need to stop all foreclosures in these times of economic difficulties because this will only aggravate the country’s social woes.
“Roof over our heads is a basic necessity and a basic human right. The primary purpose of providing socialized housing and low-cost housing is to give our people, even the poorest of the poor, a decent place to live. We should not deny them that right,” Nograles said.
“This is a major part of the President’s social alleviate program,” Nograles noted as he commended Valencia and his Senate counterpart, Senator Juan Miguel Zubiri, for giving top priority to this anti-foreclosure program.
Zialcita for his part said the measure is aimed at mitigating the pain that “our countrymen are suffering because of the global food and energy crisis that has taken its toll on the local economy.” “It’s not our people’s fault,” he added.
Zialcita said the program would cover all socialized and low-cost housing loan accounts with any of the government financing institutions and agencies that have at least 6 months of unpaid monthly amortizations, the original principal amount of which does not exceed P2 million.
Zialcita added that “it will also be beneficial to the housing agencies and government financing institutions as not only will they be able to continue their collection of amortization, but will give them relief from the difficulty of evicting delinquent occupants and from the tedious and costly foreclosure procedures that average from P50,000 to P136,000.”
Aside from Nograles, Valencia and Zialcita, the other authors are Deputy Speakers Amelita Villarosa and Raul del Mar with Reps. Mary Ann Susano, Rolando Uy, Thelma Almario, Eufrocino Codilla, Sr., Reylina Nicolas, Marcy Teodoro, and Edgardo Chato.
“This measure will undoubtedly save many of our countrymen who face the grim prospect of losing their respective houses from joining the long list of the homeless,” Nograles said.
According to Valencia, the proposed law covers a defaulting account notwithstanding that the same has previously availed of the benefits of any previous restructuring program.
It also removes the requirement of the previous condonation program that the combined family income of an applicant must not exceed P300,000 and the application for restructuring shall only be charged a processing fee lower than those charged under previous programs and no down payment shall be required.
Likewise, all penalties and surcharges shall be condoned upon approval of the restructuring application provided that a reasonable portion of the accrued interests will be condoned and that the remaining accrued interests will be treated as a non-interest bearing principal to be equally spread during the term of the restructured loan and that the restructured original principal loan will only be imposed a 6% interest.
The term of the housing loan may be extended for a period longer than its original term in order to lower the amount, provided that the extension of the restructured loan must not exceed the borrower’s age at the time of application and the age 65.
However, Valencia added, the failure on the part of the borrower to pay any amortization during the three-year period shall be a cause for the housing agencies and government financing institutions to institute foreclosure proceedings against the property covered by the defaulting account.
And finally, in case of incapacity of a borrower, his legal heirs and successors-in-interest may assume payment of his outstanding loan provided that they pass the housing agencies’ or government financing institutions’ eligibility requirements. (With reports from Romy Bwaga)
No comments:
Post a Comment