Condonation of Penalties After Full Payment
- All unpaid penalties are condoned after full payment of the principal and interest arrearages.
Loan Restructuring and Terms
- Unpaid arrearages, litigation, cancellation, and other expenses after partial payment can be restructured.
- Restructuring period corresponds to the remaining term of the original loan.
Application of Pag-IBIG Savings or Total Accumulated Value (TAV)
- Borrowers may use up to 40% of their TAV to pay outstanding housing loan balance if having an outstanding multi-purpose loan.
- Borrowers with no outstanding multi-purpose loan may apply their entire TAV to the outstanding housing loan balance.
- Qualification for new multi-purpose loans only after two years following this application.
Interest Rate on Restructured Loans
- Restructured loans maintain the same interest rate as the original loan.
Effect of Default on Restructured Loan
- Total outstanding loan balance becomes immediately due and demandable upon default.
Payment Methods for Restructured Loans
- Monthly payments can be facilitated through salary deduction, issuance of post-dated checks, or over-the-counter payments.
Procedures for Availing Condonation and Restructuring
- Borrowers must submit an application form and updated Statement of Account to designated Pag-IBIG offices.
- Application must specify if TAV will be used as down payment substitute.
- Restructured arrearages treated as a new loan with a new promissory note.
- Fees include processing fee, first-year mortgage redemption insurance premium, and notarization expenses.
Timing and Scope of Filing for Condonation
- Applications may be filed anytime by borrowers or their legal representatives.
- Only unpaid penalties up to December 31, 2002, are eligible for condonation under the amended rules.
Eligibility for Condonation under Section 3 of R.A. 8501
- Member borrowers or heirs/successors who failed to pay due to justifiable reasons may apply.
- Justifiable reasons include unemployment, disability, illness, death in the family, fire damage, housing unit defects, employer’s failure to remit deductions, and other reasons deemed justifiable by the Board.
Income Qualification for Condonation
- Annual family income must not exceed PHP 300,000 except for those applying due to housing unit defects.
Condonation Upon Application Approval
- All unpaid penalties shall be considered condoned upon approval of the application.
Loan Restructuring Terms
- Arrearages, litigation, cancellation, and other charges after partial payment may be restructured for up to 20 years or until the borrower turns 65.
- Restructured loan payments will coincide with the original loan amortization.
Use of Pag-IBIG Savings for Down Payment
- Similar provisions as earlier: up to 40% TAV offset if multi-purpose loan exists, full TAV offset if not.
- Eligibility for multi-purpose loan resumes after two years.
Consequence of Default Under Restructuring
- Entire loan balance becomes due immediately upon default.
Eligibility Criteria for Penalty Condonation
- Only loans delinquent for at least two years qualify, aside from specific exceptions.
Limitations on Availing Condonation
- Borrowers granted penalty condonation under these rules are disqualified from availing further penalty condonation during the loan term or until full settlement.
- This disqualification extends to heirs and successors-in-interest.
Continuity and Effectivity of Amended Rules
- Other provisions not inconsistent with this amendment remain effective.
- Amendment takes effect 15 days after publication and filing.
- Management directed to issue operational guidelines within 15 days after publication.