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Moratorium declared on in-house home loans

Trina Ibarle Orquiza

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The Department of Human Settlements and Urban Development (DHSUD) has put forward another measure meant to assist the general public amid the ongoing coronavirus disease 2019 (COVID-19) crisis.

DHSUD Secretary Eduardo del Rosario approved on Friday a two-month moratorium on in-house financing plans or credit intermediation by real estate developers as part of the DHSUD’s contribution to the implementation of the Bayanihan to Heal as One Act.

“The unpaid amortizations during the moratorium shall be payable within six months thereafter without interests and penalties,” Del Rosario said.

The moratorium, which covers all subdivision, condominium and other projects that are required to be registered with DHSUD, will cover an initial two months from the start of the enforcement of the enhanced community quarantine (ECQ) on 17 March 2020 and may be extended if necessary.

DHSUD has already implemented a three-month moratorium on housing and short-term loan payments from its Key Shelter Agencies (KSA) such as the National Housing Authority, Home Development Mutual Fund or Pag-IBIG, Social Housing Finance Corporation and National Home Mortgage Finance Corporation.

The move will likely result in a non-collection of around P31.5 billion by the KSA but will benefit more than 5.5 million members.

Del Rosario noted that while implementing a three-month moratorium on loan payments from KSAs is doable since they are part of the government, a win-win situation must be pushed also in the in-house financing scheme by private real estate developers.

He also urged regional directors and department officials to do their part in helping the government overcome the crisis by means of disseminating accurate information to their respective communities and extending assistance to the vulnerable.

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