SSS 1H housing collection up 27.5%

Many members are having difficulty in paying steep house rental fees or are living in houses in poor condition

SSS headquarters in Quezon City. Aggressive collection, foreclosure efforts, and a new billing system resulted with a boost on total collections from housing loans.

State-run Social Security System (SSS) reported double-digit collection growth from its housing loan program in the first six months this year, totaling P894 million.

“SSS housing loan for the first six months of 2019 reached P894.04 million, a 27.56 percent increase from the P665.60 million collected during the same period in 2018,” SSS said.

According to the pension fund, this development may be traced to the aggressive collection, foreclosure efforts and the development of a new billing system.

SSS president and CEO Aurora Ignacio also said the intensified collection effort serves as a reminder to its members to pay their monthly obligation to the fund.

“In line with the intensified collection efforts of the SSS’ Housing and Acquired Assets Management Department, 3,669 billing letters were sent to housing loan mortgagors or borrowers from January to July 2019. This is to remind them of their housing loan obligations and prevent incurring penalties and foreclosure of their property,” Ignacio said.

Given this, the SSS chief expressed satisfaction, saying the higher collection will enable the pension fund to extend financial assistance to its members, particularly, their housing needs.

“We are pleased with the increase in collection from housing loans. With this additional fund, we can help more members who may be having difficulties in acquiring properties or improving their houses. Members may use the housing loan for low-cost housing or house repair and improvements” Ignacio said.

“They may also use this loan to purchase a lot and construct a new house. Likewise, they can use the loan to purchase an existing residential unit or construct a new house on their owned lot,” she added.

Meanwhile, housing loan releases in the first six months slowed by 49.26 percent to just P2.07 million from the recorded P4.08 million in the same period in 2018.

Given the drop, the pension fund chief urged members to consider their housing loan program that provides a competitive rate relative to the market.

“Many members are having difficulty in paying steep house rental fees or are living in houses in poor condition. Thus, we encourage our members to take advantage of the Housing Loan Program, where they may borrow up to P2 million to buy their own home or improve the condition of their current house,” Ignacio concluded.