FORCED savings are paying off for the 14.18 million members of the Home Development Mutual Fund (HDMF) or Pag-IBIG, according to its president and chief executive Darlene Marie Berberabe.
Since the second half of 2010, Pag-IBIG has given more to its members without increasing the monthly premium of P100. It doubled the maximum loanable amount for housing loans (HL) to P6 million, reduced housing loan interest rates from 11.5 percent to 6.9 percent, provided subsidized interest rate to minimum wage earners at 4.5 percent, and reduced the calamity loan interest rate from 10.75 percent to 5.95 percent.
Since Berberabe and Vice President Jejomar Binay took over as president and chairman of the board respectively, Pag-IBIG has been gaining members, and in the process collected more membership savings without raising the monthly savings requirement for member to remit.
Berberabe said added 1.4 million members to its list in 2013, increasing membership to 14.2 million as of July 2014. There were big jumps in the number of new members in three sectors from the 2012 figures: 24 percent from overseas Filipino workers, 11 percent from household service providers, and 18 percent from self-employed members.
From July 2010 to July 2014, 6.04 million Filipino workers signed up for Pag-IBIG. This represents a 133 percent jump from the 2.594 million in July 2004 to June 2010.
Earlier this year, Binay announced that Pag-IBIG earned record revenues in 2013, posting an all-time high gross income of P29.45 billion, net income of P14.44 billion, and total asset base of P344.67 billion.
Binay said the increase, which is comparable to the net income of the country’s biggest banks, proves the agency’s financial stability and health.
He said total assets reached P345.7 billion by the end of 2013, making it one of the most profitable government corporations and the biggest key shelter agency in the country.
Pag-IBIG also declared dividends at 4.08 percent and credited P10.11 billion to members’ accounts, the highest dividend pay-out in its history. It has credited a total of P74.25 billion to members’ accounts in the past decade, almost half of which, or P35.76 billion, was declared in the last four years.
Collections in the last four years exceeded those in the previous six years, Berberabe said.
The agency’s accomplishment report titled “Bigger, Better and Faster,” stated that members’ savings amounted to P98.6 billion, 7 percent higher than the P92.1 billion from July 2004 to June 2010. Short-Term Loan (STL) and HL Collections reached P203.3 billion and P124.1 billion, 13 percent and 15 percent higher than the P179.3 billion and P107.8 billion paid by STL and HL borrowers six years before July 2010.
From January to July this year, Members’ Savings stood at P16.1 billion, STL Collections at P29.29 billion and HL Collections at P19.5 billion.
Pag-IBIG said it released P25.6 billion worth of provident savings to almost 586 million members from July 2010 to July 2014, 97 percent and 72 percent of the P26.2 billion claimed by 810 million members from July 2004 to June 2010. From January to July 2014, 108,705 members claimed their Pag-IBIG savings worth P4.9 billion.
Pag-IBIG extended P480 million in death benefits to 85,000 beneficiaries in the past four years, compared to P581 million given to 105,000 beneficiaries the previous six years, the report said.
Approved STLs totaled P183.6 billion from July 2010 to July 2014, 4 percent more than the P175.8 billion loaned out in the previous six years before. STL borrowers in the past four years reached 9.4 million, or 87 percent of the 10.7 million STL borrowers six years prior.
STLs include the Multi-Purpose Loan (MPL) and Calamity Loan (CL) programs.
The report said Pag-IBIG approved P149.8 billion worth of HL, or 91 percent of the P164.2 billion approved six years before. From January to July 2014, almost 412,000 members borrowed P32.4 billion in housing loans.
To better serve migrant Filipino workers, the agency established the Pag-IBIG OFW center, a one-stop shop that provides an integrated, aligned, and seamless delivery of services and benefits to OFW members.
Pag-IBIG has also come up with the “Needs Matching” project, a strategy of matching members’ housing need with available inventory of developers.
Its pilot project was in North Luzon, Hanjin Village, a socialized housing project for the shipyard workers of Hanjin Heavy Industries and Construction Company Limited or HHIC-Phil.
The project will allow the employee-beneficiaries to pay for the land, land development, and house construction at significantly lower costs (an average of 65 percent of market value).
The project consists of 288,147 square meters of land in Castillejos, Zambales, and is expected to generate 2,780 housing loan accounts with a total portfolio of P1.27 billion for the next three years.
The members have a wide choice of housing units: 1-bedroom or 2-bedroom duplexes or 3-bedroom single attached units with a land area of 55 or 65 square meters per unit. The price ranges from P399,000 to P599,000.
To support its remediation activities, the agency has outsourced collection and accredited collection agencies. For borrowers with delinquent accounts, Pag-IBIG is implementing programs such as loan restructuring and the Non-Performing Asset Resolution Program. Borrowers may avail of the programs as a last chance to make good their loan payments and keep their properties.
Remediation of moderately- to highly-delinquent housing loan accounts are outsourced to the top collection agencies being used by leading banks, credit card institutions, and telephone companies.
The Remediation Group achieved a higher conversion rate of non-performing loans to performing loans as of June 2014, at 45.58 percent, compared to year-end 2013’s 38.65 percent.
As of last June, the number of accounts aged 4-24 months in arrears outsourced since Pag-IBIG Fund started outsourcing in 2013 totalled 118,125 accounts with a book value of P58,232 billion. Of these, 45.58 percent or 53,637 accounts worth P22.272 billion, have been converted back as performing loans.
The figures are higher than the year-end 2013 figures of 38,552 (book value: P16.523 billion) of the 99,742 accounts (P48.859 billion) converted from NPL to PL.
By the end of 2015, Pag-IBIG hopes to set up 117 branches, making its operations faster and its transactions more convenient for its members.
The Pag-IBIG suffered a major setback when it was defrauded of P6.6 billion by businessman Delfin Lee and other officers of Globe Asiatique using ghost borrowers and spurious documents. Lee has been arrested and charges of syndicated estafa were filed against him and other officials of Globe Asiatique.
Binay has assured Pag-IBIG members that the agency is holding all collaterals equivalent to the loan value of borrowers of Globe Asiatique and that it will not enter into any settlement with Lee and his associates.
The ISO 9001:2008 certified Pag-IBIG was a signatory to the Integrity Pledge – an anti-corruption pact initiated by the Makati Business Club (MBC), the European Chamber of Commerce of the Philippines (ECCP), and other business groups. As a signatory, it pledges to combat graft, uphold ethical standards, promote transparency, punish erring employees of all ranks, and deal only with reputable entities in procurement activities.