Condonation of penalties on delinquent SSS housing loans

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EXECUTIVE ORDER NO. 149: Condonation of penalties on delinquent SSS housing loans

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Title Supreme Court: Condonation of penalties on delinquent SSS housing loans

Law: Executive Order No. 149

Decision Date: Mar 15, 1987

Corazon C. Aquino's Executive Order No. 149 condones penalties on delinquent housing loan accounts with the Social Security System, allowing borrowers to update their accounts without the burden of additional fees if paid by September 30, 1987.

delinquent accounts

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Scope of Delinquency in Housing Loan Accounts

Approximately 74,000 housing loan accounts exist.
About 72% of these accounts are delinquent, indicating a significant level of overdue payments.

Borrowers' Request and Policy Consideration

A considerable number of SSS housing loan borrowers have expressed their willingness to update their delinquent accounts.
Borrowers requested relief from the burden of paying penalties on overdue amortizations.
The condonation of penalties is viewed as a measure that would not harm non-borrowing SSS members.
It is expected to encourage more borrowers to regularize and update their accounts.

Condonation of Penalties (Section 1)

All unpaid penalties on SSS housing loan amortizations due and demandable as of April 1, 1987, are condoned (forgiven).
Conditions for condonation:
- Borrowers must pay the principal amortizations and all accrued interest on or before September 30, 1987.
- If only part-payment is made by the deadline, penalties shall apply only to the remaining unpaid balance.

Effectivity of the Executive Order (Section 2)

This Executive Order took effect immediately upon issuance on March 15, 1987.

This order reflects a policy designed to aid delinquent SSS housing loan borrowers by forgiving penalties, thereby facilitating loan account updates and accelerating loan recovery.

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