Pag-ibig Fund seen to fall short of target-A A +A
Sunday, December 15, 2013
STATE-RUN Home Development Fund (Pag-ibig Fund)-Visayas will fall short in meeting the housing loan target for this year, its top official said.
Preliminary data from the agency showed that it only released P2.72 billion in housing loans as of October this year, nearly P2 billion below its P4.109 billion target.
Victoria dela Peña, vice president of Pag-ibig Fund Visayas, said in an interview the missed target is due to glitches in the processing of some documentary requirements.
She said the slow release of land titles from the Registry of Deeds, for instance, affected the loan approval rate of the agency.
She said that since the Registry of Deeds’ adoption of computerization, linked agencies like Pag-ibig are still adjusting to the new system.
“There are still hundreds of housing loan applications that are currently pending, awaiting for land titles among other important documents,” she said.
Pag-ibig Fund Visayas also fell short of its 2012 target. It only released P3.2 billion as opposed to the P3.6 billion target.
Almost half of the total housing loan releases as of October were for Metro Cebu.
House loans approved in Cebu North amounted to P704.016 million for 798 housing units, while loans approved in Cebu South were valued at P439.831 million for 478 housing units. The units were priced between P750,000 to P1.25 million and were mostly house and lot packages.
The agency has 15 accredited residential developers in Cebu.
Dela Peña said demand for housing loans will continue to increase on the back of the real estate boom in Cebu and the low interest environment.
Pag-ibig members applying for housing loans for residential condominiums are also increasing, she said.
She said that by 2014, Pag-ibig will lower its interest rate from 7.3 percent per annum this year to 6.4 percent.
Published in the Sun.Star Cebu newspaper on December 16, 2013.