Pag-Ibig eyes more reforms to keep finance market lead
The Home Development Mutual Fund (HDMF) or Pag-IBIG Fund continues to thrive and create changes in its system and housing loan guidelines to maintain its edge as a dynamic government institution, its chief executive officer said in an interview.
“The reforms we have instituted in the last few years have catapulted the Pag-Ibig Fund as the biggest single institution in the Philippine mortgage market. As of 2006, our portfolio is already bigger that of other government owned and controlled corporations (GOCCs) and government financial institutions (GFIs) combined,” said Atty. Romero Federico S. Quimbo, president and CEO of Pag- Ibig.
Quimbo said that they have since gone a long way as they have began series of reforms to liberalize their housing programs to make it accessible to more members.
From a loanable amount of P500, 000 in 2000 at an interest rate of 16 percent it was raised to two million pesos with adjusted interest rates.
Quimbo added that to date, after six years time the housing loan interest for a P300, 000 housing loan has been lowered to six percent, for a P500, 000 to P750, 000 loans it was lowered to seven percent per annum and the highest loan package of P750, 000 to P 2 million has been dropped to 10. 5 percent.
He said that this move created a great impact to their members who want to buy their own homes especially that monthly amortizations have been lowered.
“Halos kalahati na lang ang babayaran ng borrowers sa principal at interest kada buwan. (Borrowers now pay almost half to the principal and for the interest every month) Since every peso counts to a minimum wage or middle income earner, the savings made possible by a Pag-Ibig housing loan on a monthly basis means more money for food and other needs,” stressed Quimbo.
In terms of their growth as an institution, Quimbo explained that last year they were able to break their own record in end-user housing following their latest interest rate reduction.
Last 2007, they generated P22. 5 billion total loans compared to their over P16 billion in 2006.
“This year we are expecting the growth trend to continue and we are starting to see this as for the first quarter of 2008, our end-users have already reached over P7 billion which is 84 percent higher than our loan take-outs for the same period last year,” he announced.
As the country’s biggest housing loan provider, Pag-Ibig Fund is confident that they have significantly contributed to the growth in the national economy.
Quoting a NEDA study, Quimbo said that they have contributed greatly to the creation of jobs in the country since every housing unit constructed gives jobs to 8. 3 persons.
With the high multiplier effect attributed to the housing industry, Quimbo also noted that Pag- Ibig Fund has already contributed about P2.78 trillion to the economy with their P163. 55 billion funding since the start of their housing program as every peso spent on housing adds 16.6 recent to the economy.
Recently, they have inaugurated more branch offices in
Quimbo also maid mention the triple A credit rating granted by the Philippine Ratings Services Corporation (Philratings) which acknowledged the Fund’s financial stability as a government institution.
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