DELAYS in the release of mortgage documents from government agencies and the rising costs of building materials and real properties were some of the reasons the Home Development Mutual Fund (Pag-ibig Fund)-Cebu branch failed to meet its target for the first half of the year.

Pag-ibig Cebu assistant manager for operations Rio Teves reported that the branch released P595.29 million under its shelter financing program for the first half of the year for the construction and purchase of 715 houses.

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The loan amount, however, was only 88.3 percent of the projected P674.10 million. In 2009, Pag-ibig Cebu exceeded its loan amount target of P516.347 million, releasing P518.274 million to members.

Teves blamed the decline on the delay in the release of mortgage documents like Transfer Certificates of Titles (TCT) from other government agencies, fewer deliveries of accounts from developers, rising costs of building materials and real properties as well as the rise in the selling prices of house and lot packages of many developers.

“Based on our report as of the first semester, we have only accomplished 42 percentof our year-end target as to the number of units and 44 percent as to the loan amount.

However, our office isoptimistic that if the concerned government agencies will hasten the release of the mortgage documents andthe concerned developers will increase their volume of deliveries of accounts to our office, then we will be able to meet our target,” Teves said in a statement sent to Sun.Star Cebu.

Pag-ibig Cebu branch plans to release P1.3 billion for 1,699 housing units for this year.

Teves said their office will conduct an intensive information campaign on housing loan programs, focusing on the longer terms of payment and the lower interest rates. Under its end-user or retail financing program, Pag-ibig has reduced its interest rates to six percent and has extended amortization payments to up to 30 years.

Pag-ibig Mandaue branch, on the other hand, released P623.003 million in loan value, which is slightly closer to the projected P688.84 million for the first half of the year.

This led to the purchase and construction of 853 housing units.

Pag-ibig Mandaue branch said that more borrowers availed themselves of the housing loan due to lower interest rates.

It released P536.789 million for 770 housing units in the same period last year.

Mandaue is also targeting to release P1.377 billion for 1,695 housing units this year.

Pag-ibig Fund, the biggest financier of the government’s housing program, released a total of P22.7 billion for the first half of the year.

In its website, Pag-ibig said it lent over P21 billion to members for 32,398 housing units.