QuestionsQuestions (HDMF CIRCULAR NO. 349)
It is tied to and issues interim documentation policies for Circular No. 344, the “Guidelines Implementing the Pag-IBIG Fund Takeout Mechanism for Developer-Assisted Housing Program.”
The Deed of Assignment of Contract-to-Sell (CTS) with Special Power of Attorney, and the CTS itself, shall be used instead of the DCS.
The circular changes the standard documentation required for processing developer-assisted housing loans, affecting how Pag-IBIG takes security and how the developer-assisted transaction is documented for loan takeout/conversion to real estate mortgage.
No. It still requires the CTS to be used; however, the documentation structure shifts from a DCS to a Deed of Assignment of the CTS plus a Special Power of Attorney.
The subject retention fee for the conversion of accounts to Real Estate Mortgage (REM) shall be required.
It requires that the ratio of the loan amount to the appraisal value of the collateral follow set Loan-to-Appraisal Value (LTV) percentages depending on the loan amount bracket.
Ninety percent (90%).
Eighty-five percent (85%).
It takes effect immediately, and it was adopted on September 15, 2014.
The Senior Management Committee approved them on 20 August 2014.
MS. EMMA LINDA B. FARIA signed it as Officer-in-Charge and Deputy Chief Executive Officer–Support Services Cluster.
90% loan-to-appraisal value ratio (since the bracket is “Up to P1,250,000”).
The second bracket applies: over P1,250,000 to P6,000,000, with an 85% loan-to-appraisal value ratio.
85%, because P5,000,000 falls under “Over P1,250,000 to P6,000,000.”
Circular No. 349 indicates that when accounts are converted to REM, the subject retention fee for that conversion is required, linking the documentation scheme to the later REM stage.