Pag-ibig loan transferred to National Home Mortgage Finance Corporation: Q & A

Was your Pag-IBIG home loan transferred to National Home Mortgage Finance Corporation?

Some of our clients who are already taken out with Pag-IBIG have had their clients’ home loan transferred to the National Home Mortgage Finance Corporation. To those who are affected, we have asked Pag-IBIG to provide further information regarding this decision. Below is a question and answer page of frequently asked questions regarding NHMFC loans provided by Pag-IBIG fund themselves. If you require further information, please feel free to contact your nearest Pag-IBIG branch.
Question #1: Reason for the sale

Answer: To support the government in addressing the housing backlog. Pag-IBIG Fund will be unloaded with its housing portfolio and the generated funds will be extended again to its members. The housing loan portfolio will be the subject of the securitization program of NHMFC that will be offered to developers to comply with their 15% balance housing requirements, that way NHMFC will in turn recycle funds to purchase more socialized housing loans.

Question #2: Can I file for additional loan?

Answer: Yes. NHMFC guarantees that there will never be an instance where borrowers affected by the sale will be put at a disadvantage.

Question #3: Where to file?

Borrowers shall file their additional loans with Pag-IBIG Fund during the one-year Servicing Agreement. Thereafter, NHMFC guarantees the grant of additional loan/s for house construction or improvement to eligible qualified borrowers.

Question #4: Is the sale legally binding without the consent of the borrowers?

Answer: Yes. It is so provided under Art. VI Sec 2 of the Loan and Mortgage Agreement, that borrowers agree/s to the eventual assignment/transfer by Pag-IBIG Fund of its Agreement to any of its Assignee/transferee and execute documents as maybe necessary to implement such transfer/assignment.

Question #5: Why are the borrowers not notified by Pag-IBIG Fund prior to sale?

Answers: It is so provided under the Loan and Mortgage Agreement, particularly under Sec. 3 of Art. VI thereof, which provides that “Assignment. Without need of further notice, the Borrower/s and Co-Borrower/s hereby agree/s to the eventual assignment/transfer by the Pag-IBIG Fund of this Agreement and its corresponding Promissory Note(s) to any of the latter’s assignee/transferee or its successor-in-interest.”

However, the Fund already send the corresponding Notice/Letter to the affected borrowers for their information and guidance on subject sale.

Question #6: Will there be a change in the monthly amortization?

Answer: None. NHMFC guarantees that the borrowers shall continue to be afforded the same benefits available to HDMF borrowers including but not limited to insurance provision, payments terms or opportunity for remediation, restructuring or reacquisition.

Question #7: Fullpayment and release of TCT

Answer: During the one-year Servicing Agreement, processing of full payment and release of title shall be done by Pag-IBIG Fund, after which, it shall be handled by NHMFC.

Question #8: Life and non-life insurance coverage

Answers: During the one-year Servicing period-

In case of death, permanent total disability or terminal illness of the borrower, his/her legal heirs or beneficiaries shall claim the insurance benefit. (Procedure on Application of MRI/SRI Claims HQP-HL-030)

In case of loss or damage of the property insured, the borrower shall claim the insurance benefit. (Procedure on Application of Non-Life Insurance Claims HQP-HL-032)

After the one-year Servicing period, NHMFC shall handle insurance coverage of subject Residential Housing Loan accounts.

Question #9: Where to pay monthly housing loan amortization?

Answers: During the one-year Servicing period, borrower may pay his/her monthly amortization over the counter in any Pag-IBIG Fund office or to any accredited collecting partners by the Fund.

Upon expiration of the servicing period, borrower shall pay their monthly amortization in any NHMFC office or to any NHMFC accredited collecting partners/agents.

Question #10: Postdated checks issued to HDMF

Answers: The Fund will set up AP NHMFC for the remaining PDCs issued by the borrowers after the one-year Servicing period.

Subsequent issuance of PDCs shall be handled by NHMFC.

Question #11: Remittance of housing loan amortization under salary deduction with employer

Answers: Borrowers affected under Collection Servicing Agreement (CSA) whose employer still remits payment to the Fund after expiration of the one-year Servicing Agreement with NHMFC, the Fund shall inform the affected employers a month prior to the expiration of the said Agreement.

The employer may coordinate directly with the NHMFC if they opt to continue with the same arrangement.

Question #12: Entitlement to Loan Restructuring and Penalty Condonation, Loan Term Adjustment, Plan of Payment, Non-Performing Assets Resolution Program

Answers: During the one-year Servicing period, the borrower may avail of the said programs. Processing shall be performed by the concerned HBC/Department of Pag-IBIG Fund.

Concerned HBC/department shall provide the approved documents to Loans Accounting Department to be provided to NHMFC.

Recording of said transactions shall be done by Loans Accounting Department based on the approved documents.

After the Servicing period, the borrower may avail of the same program under the NHMFC’s Penalty Condonation Program however he can no longer apply for any condonation program being offered by the Pag-IBIG Fund.

Question #13: After the one-year servicing period, what will happen to the concerned borrowers’ account?

Answer: NHMFC shall assume all rights and obligations over subject Residential Housing loans.