Purpose and objectives
- The program encourages developers to participate in providing needed housing inventory for sale to Pag-IBIG member-buyers through a Pag-IBIG housing loan.
- The program recognizes developers’ performance in their dealings with the Pag-IBIG Fund.
- The program provides encouragement and incentives so developers continuously deliver quality housing loan accounts to the Fund.
Coverage and accreditation classification
- Coverage under the guidelines applies to accredited Developers.
- Coverage is optional for accredited Developers for six (6) months from effectivity; during this period, developers may still be evaluated and be subject to Circular No. 259.
- After 6 months from issuance, coverage becomes mandatory, and the evaluation of developers and the incentives available to them are governed by these guidelines.
Developer classification rules
- Accredited Developers must be classified as Regular or Prime.
- Newly accredited Developers are automatically classified as Regular Developers for the first quarter of their accreditation with the Fund.
- For Developers with previous transactions, classification as Prime or Regular depends on performance in the quarter immediately preceding the evaluation.
- Related real estate development entities may affect approval of accreditation and classification: performance of one related entity determines approval or denial of the developer’s application, and vice versa.
- Related real estate entities include the parent company and subsidiaries of the Developer, and business entities engaged in real estate—whether or not they are currently transacting with the Fund—as developer, seller, or marketing agent of another developer or individual, where the Developer or any key officer is also a key officer or shareholder.
Performance evaluation criteria
- Developer performance is evaluated at the end of every quarter to determine eligibility to maintain classification, upgrade, or downgrade.
- Classification criteria require meeting thresholds for:
- Complete Documentation Compliance Ratio (CDCR): Regular requires at least ninety five percent (95%); Prime requires at least ninety five percent (95%).
- Unit Specifications Compliance Ratio (USCR): Regular requires at least ninety percent (90%); Prime requires at least ninety five percent (95%).
- Conversion Performance (if applicable): Regular requires at least ninety percent (90%); Prime requires at least ninety five percent (95%).
- No accounts overdue for buyback.
- Performing Accounts Ratio (PAR): Regular requires at least eighty five percent (85%); Prime requires at least ninety-five percent (95%), measured for accounts taken out in the last 24 months prior to the application date.
Conversion performance: substantial compliance procedure
- For conversion performance, submission of proof of payment to the BIR (for Expanded Withholding Tax and Documentary Stamp Tax) and the City/Municipal Assessor’s Office (for Transfer Tax) constitutes substantial compliance with the conversion requirement.
- The original receipts must be presented for authentication purposes.
- Within thirty (30) working days from presentation of proof, the developer must submit a copy of the Certificate Authorizing Registration (CAR) to the Fund.
- If there are delays on CAR issuance by the BIR, the developer must submit a report to the Fund relative to the affected accounts.
- Within fifteen (15) working days thereafter, the developer must submit a copy of proof of payment to the Registry of Deeds.
- Substantial compliance counts as fully converted only if:
- The Transfer/Condominium Certificate of Title (TCT/CCT) is transferred in the name of the borrower,
- The Real Estate Mortgage is properly annotated thereon,
- The TCTs/CCTs are returned to the Fund.
Definition of “arrears” for PAR evaluation
- For PAR evaluation, arrears means non-payment of monthly amortizations.
- PAR is measured at the point of evaluation for accounts that are not in arrears for more than three (3) months.
Evaluation forum by project location
- The Pag-IBIG Fund Housing Business Center having jurisdiction over the developer’s principal place of business evaluates the application for accreditation and determines classification.
- The Business Development Sector evaluates the application and determines classification when the developer has a project in the National Capital Region, regardless of the developer’s principal place of business.
Upgrading, maintaining, downgrading, and accreditation suspension
- Classification performance is assessed at the end of every quarter.
- A developer classified as Regular in the first quarter that meets Prime criteria is upgraded and enjoys Prime benefits and incentives in the immediately succeeding quarter.
- A developer that fails to maintain the criteria for its present classification for two (2) consecutive quarters is downgraded to the next lower classification and becomes subject to the terms and conditions of the lower classification.
- If downgraded from a Regular classification, accreditation is suspended for the quarter or until deficiencies are cured/corrected, whichever comes later.
- Downgrading or suspension does not prevent a Pag-IBIG member-buyer from filing his application directly to Pag-IBIG Fund to purchase a lot/house and lot/condominium unit in the suspended developer’s subdivision/condominium project.
- A developer with a downgraded classification or suspended accreditation may apply for upgrading in the succeeding quarter if it meets the corresponding criteria.
Incentives granted to Prime developers
- Prime Developers receive incentives covering borrower/inspection priority, express loan processing, and post-takeout support for specific title and registration activities.
Advance evaluation and unit inspection support
- Housing loan applications from Prime Developers are prioritized in advance evaluation of borrowers and inspection of completed units.
- Prime Developers submit only the Pag-IBIG member-buyer’s completed Buyer’s Information Sheet, income documents, and proof of payment of the filing fee.
- The Credit Investigation Report (CIR) and Buyer Validation Sheet (BVS) are issued to the developer within five (5) working days from submission of required documents if the member-buyer meets housing loan eligibility criteria.
- The CIR, BVS, and the receipt of the filing fee must be submitted to the Fund when filing the Pag-IBIG member-buyer’s housing loan application.
- The CIR and BVS are valid for six (6) months only.
Express processing of housing loan applications
- HL applications delivered after the signing of the MOA are evaluated within 6 working days from complete submission of the following requirements:
- Buyer’s Information Sheet;
- Deed of Absolute Sale executed by the Developer in favor of the Fund or the Pag-IBIG member-buyer;
- Certificate Authorizing Registration;
- TCT/CCT in the name of the Developer or land owner (in case of Joint Venture);
- If the TCT/CCT is in the name of the Fund: Deed of Conditional Sale between the Fund and the member-buyer; if in the name of the member-buyer: Loan and Mortgage Agreement;
- Notarized Promissory Note;
- Individual tax declaration on the land in the name of the Developer or land owner (Joint Venture);
- Individual tax declaration on improvements in the name of the Developer;
- Updated Real Estate Tax Receipt for the quarter;
- Occupancy Permit;
- Certificate of Acceptance;
- Transfer Tax Receipt for the lot and the building.
- Pag-IBIG Fund may impose additional requirements or alternative documents it deems proper.
- Pag-IBIG Fund issues a Notice of Approval (NOA) to HL applications that meet the requirements under applicable Pag-IBIG housing loan program guidelines.
- Takeout proceeds are released within 3 working days from receipt of the NOA by the Developer.
Post-takeout submission of titles and registration
- Prime Developers may engage Pag-IBIG Fund-accredited service providers to undertake:
- Transfer of title in the name of the Fund or of the Pag-IBIG member-buyer, as the case may be;
- Registration of the Loan and Mortgage Agreement in the TCTs that are in the Pag-IBIG member-buyer’s name.
- Transfer/registration costs and service fees are deducted from the takeout proceeds.
Program implementation and coordination
- These guidelines are implemented in conjunction with the prevailing Guidelines Implementing the Pag-IBIG Fund Takeout Mechanism for Developer-Assisted Housing Program.
- Any issue arising in interpretation is addressed by resolution at the Department Manager III level or escalated to the next higher level of authority.
Repeal, amendments, and continuing effect
- All memoranda, rules, regulations, and other issuances inconsistent with HDMF (Pag-IBIG FUND) Circular No. 345 are repealed.
- Circular Nos. 259, 287 and 298 continue to be in force for 6 months from effectivity of these guidelines.
- The Senior Management Committee may amend, modify, revise, and/or update the guidelines as needed, provided changes further the Program objectives and are consistent with the Fund’s charter mandate and existing laws.