Question & AnswerQ&A (HDMF CIRCULAR NO. 345)
Developers are classified as either Regular or Prime developers.
Newly accredited developers are automatically classified as Regular developers for the first quarter of their accreditation with the Fund.
A Regular developer must have at least 95% Complete Documentation Compliance Ratio (CDCR), 90% Unit Specifications Compliance Ratio (USCR), 90% conversion performance if applicable, no accounts overdue for buyback, and at least 85% Performing Accounts Ratio (PAR) within the last 24 months.
Prime developers must meet at least 95% CDCR, 95% USCR, 95% conversion performance if applicable, no accounts overdue for buyback, and at least 95% PAR in the last 24 months.
Conversion performance refers to the percentage of accounts taken out under certain circulars (259, 287, 298) that are due for conversion and have already been converted, including submission of proof of payment of taxes and transfer of title documents to the borrower.
The developer will be downgraded to a lower classification, and if downgraded from Regular, their accreditation will be suspended until deficiencies are corrected.
No, the performance of one related entity may determine accreditation and classification of the developer under these guidelines.
Prime developers enjoy prioritized advance evaluation of borrowers and unit inspections, express processing of housing loan applications, and may engage Pag-IBIG-accredited service providers for post-takeout title transfers and loan registrations.
Performances are evaluated at the end of every quarter to determine eligibility for maintaining classification, upgrading, or downgrading.
Coverage under these guidelines is optional for the first six months from effectivity, after which it becomes mandatory.