MANILA, Philippines - President Arroyo will sign into law this coming Monday a bill providing for an anti-foreclosure program to benefit some 368,535 delinquent home borrowers who have debts worth about P66.69 billion.
House Speaker Prospero Nograles Jr. said that without the measure, the delinquent home borrowers would have rejoined the ranks of the homeless.
"This is part of the Arroyo government's numerous reform measures to shield our people from the current economic crisis. This measure will undoubtedly save many of our countrymen who face the grim prospect of losing their respective houses from joining the long list of the homeless," Nograles said in an article posted on the House of Representatives website.
He said the anti-foreclosure law is a reversal of the United States' bailout scheme that provided credit facilities to investment houses and banks that went bankrupt.
In the US, he said, they are bailing out those who facilitated the housing loans but are not saving the borrowers whose homes were foreclosed because of the subprime mortage crisis.
But in the Philippines, he said, "we are not bailing out those who provided the housing loans but we are saving the borrowers themselves."
But in the Philippines, he said, "we are not bailing out those who provided the housing loans but we are saving the borrowers themselves."
Nograles, who has been pushing for the approval of the anti-foreclosure measure since 2001, commended the joint efforts of the House Committee on Housing and Urban Development chaired by Rep. Rodolfo Valencia and the Senate Committee on Urban Planning, Housing and Resettlement headed by Senator Juan Miguel Zubiri.
He added the program supports President Arroyo's social reform programs to mitigate the plight of the people against the ill effects of the economic crisis.
Valencia said the bicameral conference committee worked overtime to reconcile all minor differences between the two versions of the proposed "Socialized and Low Cost Housing Loan Restructuring Act of 2008" contained in House Bill 4220 and Senate Bill 1987.
The program will cover all socialized and low-cost housing loan accounts with any of the government financing institutions and agencies that have at least three (3) months of unpaid monthly amortizations, the original principal amount of which, does not exceed
P2.5 million.
The restructuring measure provides for the creation of a Congressional Oversight Committee composed of the Chairman of the Senate Committee on Urban Planning, Housing and Resettlement and the Chairman of the House Committee on Housing and Urban Development, four members each from the Senate and the House of Representatives.
P2.5 million.
The restructuring measure provides for the creation of a Congressional Oversight Committee composed of the Chairman of the Senate Committee on Urban Planning, Housing and Resettlement and the Chairman of the House Committee on Housing and Urban Development, four members each from the Senate and the House of Representatives.
Upon review and approval of the implementing rules and regulations, the oversight committee shall cease to exist, provided that an annual report on the loan restructuring and condonation program are regularly submitted to Congress by the GFIs and housing agencies.
Other authors of the measure include Deputy Speakers Amelita Villarosa and Raul del Mar, Reps. Mary Ann Susano, Rolando Uy, Thelma Almario, Eufrocino Codilla, Sr., Reylina Nicolas, Marcy Teodoro, and Edgardo Chatto.
"It will also be beneficial to the housing agencies and government financing institutions as not only will they be able to continue their collection of amortization, but will give them relief from the difficulty of evicting delinquent occupants and from the tedious and costly foreclosure procedures that average from P50,000 to P136,000," Zialcita noted.
According to Valencia, the law covers defaulting accounts even if the delinquent home borrowers have already availed of the benefits of previous restructuring programs.
"An application for restructuring shall not be charged a processing fee and no down payment shall be required for a borrower to apply for the benefits of this loan restructuring and condonation program," Valencia said.
"An application for restructuring shall not be charged a processing fee and no down payment shall be required for a borrower to apply for the benefits of this loan restructuring and condonation program," Valencia said.
Likewise, all penalties and surcharges shall be condoned upon approval of the restructuring application. As such, reasonable portion of the accrued interests will be condoned while the remaining accrued interests will be treated as non-interest bearing principals to be equally spread during the term of the restructured loan.
The restructured original principal loan will only be imposed an interest not higher than on the original loan or not more than 12%, whichever is lower.
The term of the housing loan may be extended for a period longer than its original term in order to lower the amount, provided that the extension of the restructured loan must not exceed the borrower's age at the time of application and the age 70.
However, Valencia added, the failure on the part of the borrower to pay any amortization during the three-year period shall be a cause for the housing agencies and government financing institutions to institute foreclosure proceedings against the property covered by the defaulting account.
In case of incapacity of a borrower, his legal heirs and successors-in-interest may assume payment of his outstanding loan provided that they pass the housing agencies' or government financing institutions' eligibility requirements.
Source of News: GMANews.TV
Source of News: GMANews.TV
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