Question & AnswerQ&A (GSIS Resolution NO. 176)
The main subject is the approval and confirmation of a Restructuring Program for Housing Loans under the Government Service Insurance System (GSIS).
An interest rate of 6% per annum compounded annually is applied to Consumer Mortgage Loans (CML) Accounts Receivables under the restructuring program.
The 6% interest compounded annually was selected because it is the least complicated process for the Information Technology Services Group (ITSG) and the Internal Reconciliation Department (IRD), and it is favorable for members who have waited more than 18 months for account restructuring.
The extension aimed to give members additional time to update their accounts and to allow GSIS to reduce their inventory of acquired assets.
The resolution was certified correct by Nita P. Javier, Corporate Secretary, and confirmed by Robert G. Vergara, Vice-Chairman of the GSIS Board of Trustees.
The approval legally binds GSIS and its members to adhere to the terms of the restructuring program, allowing members to have their housing loan accounts restructured with the specified interest rate and terms.
'Run dunning' refers to the process of applying the 6% interest rate to overdue Consumer Mortgage Loans accounts to encourage payment and facilitate account updating and restructuring.
The Information Technology Services Group (ITSG) and the Internal Reconciliation Department (IRD) are involved in implementing the restructuring program.
It benefits members by providing a simplified and favorable interest rate for restructured loans, especially for those who have waited more than 18 months to restructure their accounts, potentially easing their debt burden.
The program aims to reduce GSIS's inventory of acquired assets by encouraging members to update their accounts and restructure their loans, which can facilitate asset recovery and management.