Tuesday, October 28, 2008

Explain foreclosures, gov’t agency told

By Judy Quiros, Allan Nawal
Mindanao Bureau
First Posted 04:01:00 10/22/2008

DAVAO CITY, Philippines—The Ombudsman has given the government’s National Home Mortgage Finance Corp. (NHMFC) in Mindanao 15 days to explain why it foreclosed on a number of low-cost and socialized real estate mortgages and resold these to the Balikatan Housing Finance Corp. (BHFC), a private corporation.

Davao City Councilor Danilo Dayanghirang filed the complaint against the NHMFC and BHFC on Sept. 13, saying it was one of the “biggest scandals” under Vice President Noli de Castro’s administration as chair of the Housing and Urban Development Coordinating Council (HUDCC).

According to Dayanghirang, the NHMFC foreclosed on 9,000 homes in this city alone and transferred ownership to the BHFC, a subsidiary of Deutsche Bank Real Estate Global Opportunities based in Germany.

He did not say when the foreclosures started.

“I took up the cudgels for the city’s homeowners; this is a nationwide problem,” Dayanghirang said.

Last alternative

Lawyer Dante Rizada of the NHMFC’s legal department said the fund agency foreclosed on “thousands” of properties nationwide because they were considered “highly delinquent” accounts.

“Foreclosing properties is our last alternative. We want to understand [homeowners] but we also need to take the necessary steps to protect the agency,” Rizada said.

He said the NHMFC had given homeowners a chance to pay their amortization but financial difficulties prevented them from keeping up with the payments.

Rizada said that before foreclosing on any property, they send out demand letters and notices.

“But some homeowners abandon their property before the actual foreclosure,” he said.

Rizada declined to speak on the agreement between the NHMFC and BHFC.

Though Dayanghirang said the deal was irregular because it did not pass Congress. He also said the NHMFC was transacting business with a company it partially owned.

Dayanghirang claimed the NHMFC owned 41 percent of BHFC, while DB Global Real Estate Opportunities owned 51 percent.

Higher rates

While homeowners could still buy back foreclosed properties by dealing with the BHFC, Dayanghirang said they would have to pay higher interest rates.

The NHMFC only charges nine percent interest while the BHFC charges 14 percent interest.

He also said the BHFC did not offer loan condonation unlike the NHMFC.

Dayanghirang said he had asked Congress for help before he filed a complaint with the Ombudsman but nothing happened.

“Congress, specifically Speaker Prospero Nograles, said he would call for an immediate investigation of Balikatan but until now nothing has been done,” he said.

Source: Inq.NET


Monday, October 27, 2008

Think Rich Pinoy Event

Have Fun Learning Wealth Creation! Join Larry & The TRP Team

What : Think Rich Pinoy Workshop
When : November 22 ,2008, Saturday
Where: PhilamLife Building, Manila
Text : 0915-499-1999
Early Bird Fee: P 1475 / US 37 (Buy on or before October 3,2008
Normal Admission Fee: P 1975.00 / US 47
Email: richteamevents+blog@gmail.com

Friday, October 24, 2008

RP's key shelter agencies set for 2008 Housing Fair

Roxas City (23 October) -- Different key shelter agencies of the government are set for the three-day "Housing Fair" on October 29 to 31 at SM Mega Mall's Mega Trade Hall 1 and 2.

The fair is directed by President Gloria Macapagal – Arroyo in a Memorandum Circular 160 in line with the government efforts to make housing truly affordable and accessible to ordinary workers.

"The government through the Housing and Urban Development Coordinating Council (HUDCC), its key shelter agencies, namely, the Home Development Mutual Fund (HDMF), the National Home Mortgage Finance Corporation (NHMFC), the Home Guarantee Corporation (HGC), the Housing and Land Use Regulatory Board (HLURB), and the National Housing Authority (NHA), and the government financial institutions with home lending operations, have agreed to forge a strategic alliance towards the attainment of the goals and objectives of the National Shelter Program," said part of the circular.

The National Shelter Program is the government's channel to address the housing requirements of both the informal and formal sectors of the community.

President Arroyo has also signed recently the Socialized and Low-Cost Housing Loan Restructuring and Condonation Act of 2008 to give the underprivileged Filipinos the chances to save their homes from foreclosure thru a rational loan restructuring and condonation scheme.

The new law offers a rational loan restructuring and condonation program for the underprivileged Filipinos based on the credit worthiness and credit discipline of the borrowers and the financial viability of the lending institutions.

It is a welcome relief to thousands of Filipino families struggling to keep their loan-financed homes from foreclosure. (PIA)

Source: PIA Press Release

by A. Lumaque

Thursday, October 23, 2008

Explain foreclosures, gov’t agency told

By Judy Quiros, Allan Nawal
Mindanao Bureau
First Posted 04:01:00 10/22/2008

DAVAO CITY, Philippines—The Ombudsman has given the government’s National Home Mortgage Finance Corp. (NHMFC) in Mindanao 15 days to explain why it foreclosed on a number of low-cost and socialized real estate mortgages and resold these to the Balikatan Housing Finance Corp. (BHFC), a private corporation.

Davao City Councilor Danilo Dayanghirang filed the complaint against the NHMFC and BHFC on Sept. 13, saying it was one of the “biggest scandals” under Vice President Noli de Castro’s administration as chair of the Housing and Urban Development Coordinating Council (HUDCC).

According to Dayanghirang, the NHMFC foreclosed on 9,000 homes in this city alone and transferred ownership to the BHFC, a subsidiary of Deutsche Bank Real Estate Global Opportunities based in Germany.

He did not say when the foreclosures started.

“I took up the cudgels for the city’s homeowners; this is a nationwide problem,” Dayanghirang said.

Last alternative

Lawyer Dante Rizada of the NHMFC’s legal department said the fund agency foreclosed on “thousands” of properties nationwide because they were considered “highly delinquent” accounts.

“Foreclosing properties is our last alternative. We want to understand [homeowners] but we also need to take the necessary steps to protect the agency,” Rizada said.

He said the NHMFC had given homeowners a chance to pay their amortization but financial difficulties prevented them from keeping up with the payments.

Rizada said that before foreclosing on any property, they send out demand letters and notices.

“But some homeowners abandon their property before the actual foreclosure,” he said.

Rizada declined to speak on the agreement between the NHMFC and BHFC.

Though Dayanghirang said the deal was irregular because it did not pass Congress. He also said the NHMFC was transacting business with a company it partially owned.

Dayanghirang claimed the NHMFC owned 41 percent of BHFC, while DB Global Real Estate Opportunities owned 51 percent.

Higher rates

While homeowners could still buy back foreclosed properties by dealing with the BHFC, Dayanghirang said they would have to pay higher interest rates.

The NHMFC only charges nine percent interest while the BHFC charges 14 percent interest.

He also said the BHFC did not offer loan condonation unlike the NHMFC.

Dayanghirang said he had asked Congress for help before he filed a complaint with the Ombudsman but nothing happened.

“Congress, specifically Speaker Prospero Nograles, said he would call for an immediate investigation of Balikatan but until now nothing has been done,” he said.

Source: Inq.net


Friday, October 17, 2008

Arroyo to sign anti-foreclosure bill Monday

All Filipinos who are in the Philippine foreclosure industry ought to be aware of this new law:
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."
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.
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.
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