Home loans to informal settlers hit P1B

Micro-finance loans for housing granted by the National Home Mortgage Finance Corp. (NHMFC) during the last two and a half years under its Community Mortgage Program (CMP) have breached the P1-billion mark, the biggest cumulative loan amount granted for an equivalent period during the 14.5 years of implementation of the home financing program for the informal settlers.

Housing Secretary Michael T. Defensor, concurrent chairman of the Housing and Urban Development Coordinating Council and of the NHMFC board of directors, said that the loan released during the administration of President Arroyo, amounted to P1.12 billion, which financed 209 urban poor sites nationwide for 28,312 beneficiaries. This amount is the highest total loan released under any administration for similar period.

Of this amount, P295.2 million was released from January to June 30 this year for some 6,615 beneficiaries.

During the last 2 1/2 years of the Ramos administration (1996-1998), a total of P1,089-billion in loans was granted, still lower than the P1.12-billion record posted during the 2.5 years of President Arroyo’s watch, Salud pointed out.

Under the GMA administration, the CMP has averaged a yearly loan take-out value of P440 million, more than double that of the previous administration’s P220 million per year average.

Meanwhile some 6,615 homeless urban poor families received a total of P295.2 million in housing loans from the (NHMFC) during the first six months which financed their land purchase housing construction under the agency’s community Mortgage Program (CMP).

Defensor, said that loans granted during the period are equivalent to 60 percent of last year’s annual loan level of P484.6 million, among the highest levels of urban poor housing loan releases during the last 14.5 years of program implementation.

Due to the much improved loan processing system, Angelico T. Salud, NHMFC president, added that the total loan releases under the program are expected to hit the P500-million mark by year-end, considered as another high point in the CMP program implementation.

The first semester’s loan performance brings to a cumulative total of P4.08 billion the loans granted since 1989, which financed a corresponding 1,057 CMP projects of urban poor homeowners’ associations nationwide, for 133,239 family-beneficiaries.