PFH_HDMF_Phillippines

8/6/2019 PFH_HDMF_Phillippines

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Pag-IBIG Fund :The PhilippinesProvident Fund

for Housing


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OutlineOutline

O verview: Pag-IBIG Fund as a SocialSecurity AgencyIssues Being AddressedHousing Finance Innovations

O utcomeProspects for the Future


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agag-- un as aun as aSocial Security AgencySocial Security Agency

To generate savings throughTo generate savings throughmembership in an integratedmembership in an integratednationwide savings system.nationwide savings system.

To mobilize the providentTo mobilize the providentfunds of its members for funds of its members for housing purposes.housing purposes.

MandatesMandates


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Fund UsagePagPag--IBIGs BusinessIBIGs BusinessFund Sources

Members ContributionsMembers ContributionsShortShort--Term Loan AmortizationsTerm Loan AmortizationsHousing Loan AmortizationsHousing Loan Amortizations

EndEnd--user Financinguser Financing

Housing FinanceHousing Finance

Institutional LoansInstitutional Loans

Investment PortfolioInvestment Portfolio

Reserve FundsReserve Funds

ShortShort- -Term LoansTerm Loans

Provident BenefitsProvident Benefits

Provident ClaimsProvident Claims

Death BenefitDeath Benefit


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Provident Benefit: withdrawal of members Total Savingsconsisting of personal and employer contributions aswell as dividends

Additional Death Benefit: Php 6,000 (US$ 127.89) upondeath of the member

Housing Loan: maximum of Php 2 million(US$42,628.47)

Short-Term Loan: as much as 80% of the membersTAV, depending on total monthly contributions

BenefitsBenefits


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2008 Pag2008 Pag--IBIG BranchesIBIG Branches

(2) Baguio

(3) La UnionDagupan Ext. (3 )Vigan Ext. (4 )Ilocos Norte Ext.(5 )

(4) San Fernando

(5) Malolos

(22) Lucena

(24) CalambaPalawan Ext. (1 2)

(25) Legazpi

Masbate Field SC ( 2)

(31 ) TaclobanCatbalogan Ext.Ormoc SC

(27) IloiloKalibo SC (4 )

Roxas Ext. (13 )(28) Bacolod(29) Cebu

Dumaguete Ext.

(12) ZamboangaDipolog Ext. ( 7)

(13 ) Pagadian

(15 ) Iligan

(16 ) ButuanSurigao Ext. ( 9)

(32) Davao

(35 ) Cotabato

Kidapawan SC

(14 ) Cagayan de OroMalaybalay Ext. ( 8)

(34 ) General Santos

(30) MandaueTagbilaran Ext.

(26) NagaDaet Field SC (3 )

(6) Dinalupihan

Cabanatuan Ext.(6 )

(1) TuguegaraoIsabela Ext. (1 )Nueva Vizcaya Ext. ( 2)

(21) Caloocan

(18) Kamias

(19) Cubao

(17) OrtigasAntipolo SC (1 )San Jose Antipolo Ext.(1 0)

(20) Manila

(7) Makati I

(10) Pasay

VISAYAS GR OUP

LUZON S OUTH GR OUP

PR OVIDENT NORTH GR OUP

PR OVIDENT S OUTH GR OUP

LUZON NORTH GR OUP

MINDANAO NORTH GR OUP

MINDANAO SOUTH GR OUP

(8) Makati II

(9) Imus

(23) BatangasCalapan Ext. (11 )

(33 ) Tagum

(11 ) PAG-IBIG OVERSEAS GR OUP (PI OG)


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In MillionsIn Millions

Membership LevelMembership Level

02 2

7 2

989 99 2008*

*As of August 2008

4 %growth ratefrom 1989


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Issues being addressedIssues being addressed

Mismatch between fund sources and loanpackages. Loan entitlement of members

have increased despite the stagnant rateof contributions, which have not changedsince 1986.


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MandatesMandates

M embers savings are pooled together to

finance a housing loan (HL).Based on an average savings of US$452.02, HLs are financed in thismanner: 14 members : US$ 6,394.27 35 members : US$ 15,985.68 94 members : US$42,628.47

Pooling of Savings for HousingPooling of Savings for Housing

*Based on 30 Sept. 2008 forex rate of US $ 1 : Php 46.917 *Based on 30 Sept. 2008 forex rate of US $ 1 : Php 46.917


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Issues Concerning CollectionsIssues Concerning Collections

Government loans are dole-outs.

N o need to pay them.


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TAPAT SA PAG-IBIG FUND CAMPAIGN


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Housing Finance InnovationsHousing Finance Innovations

RiskRisk--SharingSharingPagPag--IBIG FundIBIG FundDeveloper Developer

Faster takeoutFaster takeout

PostPost- -takeouttakeoutInspectionInspection

TwoTwo--year year

Buyback PeriodBuyback Period

ProcessProcessLoan ApplicationsLoan Applications

DevelopersDevelopersWarrantiesWarranties


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Organizational SetOrganizational Set- -upupThenThen NowNow

LoansLoansO riginationO rigination

Loans Management /Loans Management /CollectionCollection

Loans Management /Loans Management /CollectionCollection

LoansLoansO riginationO rigination


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O ther Avenues for CollectionO ther Avenues for CollectionOverseasOverseas

Remittance FacilityRemittance FacilityOnOn--line Paymentline Payment

Collecting BanksCollecting Banks


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Higher loan-to-collateral ratio: as much as 100%

for loans up to P750,000

Lower interest rates: as low as 6% per annum

Longer repayment term: maximum of 30 years

Faster takeout/loan release: within 7 days fromsubmission of complete mortgage documents

Member Member- -Borrower FriendlyBorrower FriendlyLoan FeaturesLoan Features


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198.60

315.20 326.10 343.20

481.50

2003 2004 2005 2006 2007

(in million US $ )(in million US $ )

ous ng oan a eou sous ng oan a eou s20032003 --20072007



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48.8

63.870.5

79.2

2002 2007

(in percent )(in percent )

2007 Performing Loans Ratio2007 Performing Loans Ratio

MCRMCRS

CRS

CR


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HL CollectionsHL Collections




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118.3140.7

162.8

198.4 199.1

2003 2004 2005 2006 2007


HL IncomeHL Income



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2007 Home Financing2007 Home Financing

agF n ,

0,0%

th e ,hp66.00 ,

22%

All anom ine ,hp112.20 ,

%

In Billion PesosIn Billion Pesos

Single Biggest Source of Home Financing


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IncomeIncome fromfrom HousingHousing InvestmentsInvestments areare returnedreturnedtoto membersmembers inin thethe formform of of DividendsDividends. .

.. .

. .



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Prospects for the FutureProspects for the Future

Provide shelter security to Filipino householdsby allocating Php 75 B (US$ 1.6 B) to financeclose to 160,000 houses in 2008-2010


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ReferencesReferences

Presidential Decree N o. 1752, as amended

Pag-IBIG Fund C ircular N o. 237

Llanto, Gilbert M . and Basilio, Leilanie Q. (1999)Housing Policy, Strategy and R ecent

Developments in M arket-Based HousingFinance. PIDS Discussion Paper Series N o.99-20


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Thank you!

PFH_HDMF_Phillippines

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