Pag-Ibig Fund posts P7.3-B collection in 2010

Friday, December 31, 2010

THE Pag-Ibig Fund or Home Development Mutual Fund (HDMF) in Southern Mindanao reported a P7.3 billion collection for 2010 with a 111.12 percent increase against this year's target.

HDMF vice president for Southern Mindanao Group Jose W. Banzon Jr. said during his year-end briefing with the Davao business reporters that they surpassed their target for 2010 pegged at P6.607 billion.

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Sources of their collections are the Short-Term Loan, Housing Loan, Sale of Acquired Assets and Membership Contributions.

Banzon also reported that they hit the billion mark this year in terms of income pegged at P1.14 billion, with a 19.85 percent increase against its net income last year. Gross income in 2010 accounted to P1.50 billion.

He attributed the positive growth to their aggressive and consistent advocacy. He said they noticed that borrowers are now becoming conscious of their responsibility.

"They are now more aware that housing loan is a lifetime investment that needs to be protected," he said.

He said the Pag-Ibig Fund requires members to attend the seminar, a requirement for application of housing loan where all features about the program are explained.

Banzon said the agency is really serious in the collection. It, in fact, maintains a repayment rate of 85 percent, he added.

Total active members in Southern Mindanao reach 546,415, registering an increase of 12.83 percent against the 2009 figure of 4,843,302.

Total contribution is pegged at P1.41 billion.

He also said that Pag-Ibig Fund has two mandates: as Provident Fund and a Housing Agency. It follows a policy that 70 percent of their investible funds go to housing.

He said investible funds are the amount used after deducting operating expenses and reserve funds. Reserve fund is to take care of claims from members whose contribution reach maturity and qualified for withdrawal.

Meanwhile, Banzon said the STL collections as of end December 2010 accounted to P3.92 billion, with a 111.30 percent increase of its accomplishments vis-a-vis their target of P3.52 billion.

About 223,274 members availed of the short-term loan, which registered an increase of 124 percent against its target of availment at 179,203.

He said 2010 is a good year for the Fund as far as housing loan is concerned, as it collected P1.44 billion against the target of P1.22 billion or an increase of 117 percent.

He said some 4,799 availed of housing loan this year.

Under the Asset Recovery Collections (Acquired Assets), Banzon said they were able to collect some P555.562 million as against their target of P483.108 million, or an increase of 115 percent.

He said most of those members with foreclosed houses applied for redemption of their houses. He, however, said that when they started implementing the redemption package in 2000, only a few availed of this but the trend accelerated six years ago.

For the 10-year period, the Fund's total collection under the acquired asset amounted to P1.8 billion and total houses disposed accounted to 9,000 units.

The year 2011 is another good year for Southern Mindanao Group, Banzon said, as they see an increasing demand both for their short term and housing loans.

He said they still follow a universal target set by their head office and they will continue to implement the provisions set by Republic Act 9679, especially by increasing their membership level to cover all sectors that by law are now mandatorily covered by the agency. (Prix D. Banzon)