True to its mandate, the state firm Social Housing Finance Corp (SHFC) has refrained from foreclosing loans awarded to the underprivileged and instead provided much leeway for the partner-borrowers to keep up with the very low monthly payment.
SFHC executive vice president Atty. Junefe Payot said the agency instead resorts to fund-generating programs like securitization to ensure that it can cope with the government’s target of a community-based housing program.
“For the longest time, we refrained from proceeding to foreclosure because it’s really against our mandate or our basic principle that housing is a right,” Payot said during Tuesday’s “Straight Talk with Daily Tribune.”
According to Payot, instead of repossession of properties of “highly delinquent” partner-borrowers, SFHC proceeds with the small claims court to “force” payment.
“It worked. It is effective as our collection rate went up,” Payot said.
That’s why we are trying to generate more funds to make sure that that right is upheld.
He said the SFHC’s collection rate is between 70 to 80 percent. The 20 percent comprises the delinquents.
Currently, Payot and SFHC officer-in-charge for securitization Atty. Ann Margarette Vista said they are securitizing P2.3 billion of SFHC’s P17.2 billion receivables.
“Based on the filtered criteria, we derived with asset pool amounting to P2.3 billion. So, that will be securitized,” Vista explained.
She said the securitization could be completed by next year and SHFC has already lined up projects that will benefit from the program.
Latest community in Davao
Meanwhile, SHFC awarded a check worth P13.3 million for the takeout of Sr. Sto. Niño Settlers Homeowners Association Inc. (HOAI) in Barangay Marapangi, Toril District, Davao City recently.
The payment allowed the purchase of about four hectares of land for the benefit of 264 partner-homeowners, the majority of whom were affected by the development of a fish port complex in the coastal area of Daliao.
More than 200 community members and their families attended the ceremony led by SHFC president Atty. Arnolfo Ricardo Cabling.
Cabling congratulated the association for their successful participation in the Community Mortgage Program (CMP), the agency’s flagship initiative, and extolled SHFC’s community-driven approach in delivering shelter solutions for the underprivileged.
Organized in 2002 through the effort of the Assumption Parish Socio-Economic Development Foundation, Sr. Sto. Niño Settlers HOAI is currently headed by Meriam Alvarado.
Its members will pay an average of P343.86 a month for 25 years under the CMP, which aims to improve the living conditions of underprivileged families by giving them affordable financing scheme wherein they can borrow as a community to buy the land they occupy or would like to relocate to.
CMP has provided security of tenure to more than 310,000 families and has released about P15 billion in loan assistance since it was launched in 1988, translating to over 2,700 communities built in the last three decades.
SHFC is the lead agency assisting underprivileged communities to secure land tenure through shelter financing and development solutions by “Building Adequate, Livable, Affordable and Inclusive” Filipino communities.