The Home Development Mutual Fund or Pag-IBIG has observed a stronger collection system with the outsourcing of some of its collection services.
In a statement on Tuesday, Pag-IBIG Senior Vice President for Home Lending Operations Sector Marilene Acosta said the Fund collected P5.11 billion in housing loan payments during the first eight months of the year.
“From January to August this year alone, we have already collected housing loan payments worth P5.11 billion because of these partnerships, or P2.21 billion from collection agencies and P2.90 billion from our tele-collection service partner,” Acosta said.
Since partnerships with collection agencies were forged in 2013 and with a tele-collection firm in 2015, Pag-IBIG was able to generate P16 billion of additional collections.
Acosta noted the outsourcing of collection services lowered Pag-IBIG’s administrative costs.”On top of the additional collections, Pag-IBIG also saved on administrative cost, including salaries and logistics, by about P50 million a year. We also put at P1.57 billion yearly our savings on loan loss provisioning.”
Pag-IBIG Vice President for Loans Remediation Group Benjamin Felix Jr. said the outsourced collections contributed to raising the Fund’s performing loans ratio, which now stands at 91 percent, net of impairment allowance. “This means that out of 10 housing loan borrowers, nine are paying.”
The collection firms were able to help Pag-IBIG collect past due housing loans. “Since we tapped the services of the collection agencies, we have helped 210,650 housing loan borrowers save their properties by offering them settlement options acceptable both to the Fund and the borrower,” Felix said.
In 2015, Pag-IBIG reported P111 billion in total collections. Its net income increased by 24.5 percent to P20.2 billion from P16.22 billion posted in 2014.