Documents required down to 23

Informal settlers can now realize their land and housing security faster following the reduction from 56 to 23 of the documents required in their availment of the six-percent interest bearing loans under the Community Mortgage Program, according to National Home Mortgage Finance Corporation (NHMFC) president Angelico Salud.

The NHMFC board of directors, chaired by Housing Secretary Michael T. Defensor, approved the reduction of loan documents in compliance with the commitments earlier made by President Arroyo and to boost the grant of CMP loans to some 50,000 informal housing beneficiaries, Salud said.

Since 1995, the loan documents required total to 56 which was now reduced by 57 percent to 23 for existing CMP loan originators including local government units, government agencies, or non-government organizations who assist informal settlers in loan availment, he pointed out.

The reduced documentary requirement applies to CMP loan applications already in process for project enrollment; and as applicable, to projects already accredited, delivered and being processed by the NHMFC loan examination and mortgage examination units, for eventual endorsement to the NHMFC board for the issuance of letter of guaranty for payment.

Even with the reduction of the loan documentary requirements, the facility or delay in the release of CMP loans greatly depends on the completeness and timeliness of submission by the CMP originators and loan applicants of said documents, Salud emphasized.

The documents were reduced and the loan processing systems were further streamlined to facilitate homeownership by the informal housing sector, without prejudice to ensuring the integrity of the homelending program, nor the recovery of the loan, or the validity and enforceability of the loan, Salud informed.

Earlier, NHMFC entered into an agreement with the Bureau of Internal Revenue for a five-day issuance of capital gains tax exemption on lands purchased under CMP, as well as with the Land Registration Authority to further easen the titling requirements for lands for purchase by the informal settlers, Salud added.