Title
Pag-IBIG Developer Incentives Classification
Law
Hdmf (pag-ibig Fund) Circular No. 345
Decision Date
Jul 24, 2014
The Pag-IBIG Fund Circular No. 345 establishes guidelines for classifying developers as Regular or Prime, incentivizing their participation in providing quality housing inventory for Pag-IBIG member-buyers through performance-based evaluations and benefits.

Coverage and Implementation Timeline

  • Optional application of guidelines for accredited developers for six months from effectivity date.
  • During this period, evaluation and terms of Circular No. 259 apply.
  • After six months, adherence to these guidelines and mandatory developer classification and incentives apply.

Developer Classification and Evaluation Criteria

  1. Classification Types:
    • Regular Developer
    • Prime Developer
  2. New Developers classified as Regular for first quarter.
  3. Existing Developers classified based on past quarter's performance.
  4. Evaluation Criteria for Regular Developers:
    • Complete Documentation Compliance Ratio (CDCR): ≥ 95%
    • Unit Specifications Compliance Ratio (USCR): ≥ 90%
    • Conversion Performance: ≥ 90% converted accounts or substantial compliance with payment proofs.
    • No overdue accounts for buyback.
    • Performing Accounts Ratio (PAR): ≥ 85% accounts not >3 months in arrears in last 24 months.
  5. Evaluation Criteria for Prime Developers:
    • CDCR: ≥ 95%
    • USCR: ≥ 95%
    • Conversion Performance: ≥ 95% converted accounts with same compliance rules as Regular.
    • No overdue buyback accounts.
    • PAR: ≥ 95% accounts not >3 months in arrears in last 24 months.
  6. Related Entities:
    • Performance of related companies affects accreditation and classification.
    • Related entities include parent, subsidiaries, and companies with shared key officers or shareholders.
  7. Evaluation Frequency:
    • Quarterly evaluations to maintain, upgrade, or downgrade classification.
    • Downgrade rules include suspension for Regular Developers failing criteria for two consecutive quarters.
    • Suspended Developers can still have buyers apply directly to Pag-IBIG.
    • Opportunity to reapply for upgrade after remedying deficiencies.
  8. Implementation alongside existing Takeout Mechanism guidelines.

Incentives for Prime Developers

  1. Priority in borrower evaluation and unit inspection:
    • Submission requires Buyer's Information Sheet, income documents, and filing fee proof.
    • Credit Investigation Report and Buyer Validation Sheet issued within five working days.
    • Reports and receipt valid for six months.
  2. Express Processing of Housing Loan Applications:
    • Evaluated within six working days upon complete submission of prescribed documents including Deeds, Certificates, Tax declarations, permits, and Receipts.
    • Additional requirements may be imposed by the Fund.
    • Notice of Approval issued for qualified applications.
    • Takeout proceeds released within three working days from Notice receipt.
  3. Post-takeout Title Transactions:
    • Use of Pag-IBIG accredited service providers for title transfers in Fund's or buyer’s name.
    • Registration of Loan and Mortgage Agreements.
    • Associated costs deducted from takeout proceeds.

Repealing Clause

  • Inconsistent memoranda, rules, and regulations are repealed, except Circular Nos. 259, 287, and 298 which remain effective for six months.

Escalation and Dispute Resolution

  • Interpretation issues resolved by Department Manager III or escalated to higher authority.

Amendment Procedures

  • Senior Management Committee authorized to amend, modify, or update guidelines.
  • Amendments must align with program objectives and Fund's charter.

Effectivity

  • Guidelines are effective immediately upon issuance.

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