HDMF Loan Processing Policies Amendment

Takeout proceeds for housing loans under Window 1 and Window 1 (Elite) will be released within 15 working days from the delivery of loan folders.
Release is contingent on adherence to the projected delivery schedule in the Funding Commitment Agreement and absence of negative findings on the loan application or borrower.
The Fund’s evaluator/appraiser must complete several tasks within the said period including:
- Checking completeness of loan documents.
- Evaluating validity and authenticity of loan documents.
- Verifying borrower’s identity.
- Validating borrower’s intent and eligibility for the loan.
- Assessing borrower’s capacity to pay.
- Inspecting the house and lot units.
- Witnessing signing of loan documents (Loan Marketing Agreement, Promissory Note, Disclosure Statement).
Pre-takeout validation and signing occur within a day at Fund office or project site as arranged by the developer.

All submitted loan folders must be accompanied by a notarized Certification signed by the developer’s authorized signatory.
The Certification attests to the completeness and authenticity of the submitted documents.

Developers must convert accounts from CTS to REM within:
- 24 months from takeout for Windows 1 and 2.
- 36 months from takeout for Window 1 (Elite).
Early conversion does not affect the Buyback Guarantee, which remains effective for two or three years seasoning period.
HDMF will not issue Notices of Conversion; developers must notify the Fund in writing regarding the initiation and scheduling of conversion.

All prior memoranda, rules, regulations, or issuances inconsistent with these new policies are repealed, amended, or modified accordingly.
Provisions of Circular No. 259 not affected by these policies remain adopted and integrated.

The amendments and additional policies take effect on 1 March 2011.
The changes were adopted as of 10 March 2011 by Atty. Darlene Marie B. Berberabe.