Pag-IBIG FUND Corporate Headquarters Petron MegaPiaza 358 Sen. Gil Puyat Ave., Makati City Circular No.

310

TO : ALL CONCERNED SUBJECT : AMENDED GUIDELINES ON THE PAG-IBIG FUND END-USER HOME FINANCING PROGRAM
1 Pursuant to the approval of the Pag-IBIG Fund Board of Trustees in its 280 h Board Meeting held last 21 December 2011 , the Amended Guidelines on the Pag-IBIG Fund End-User Home Financin g Program are hereby issued:

1. COVERAGE
These guidelines shall apply to housing loan applications received beginning 2 July 2012. 2. LOAN PURPOSE The Pag-IBIG housing loan may be used to finance any one or a combination of the following : 2.1 Purchase of a fully developed lot or adjoining lots not exceed ing one thousand square meters (1,000 sq . m.), which should be within a residential area ;

2.2 Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be: 2.2.1 Old or brand new; 2.2.2 A property mortgaged with the Fund; 2.2.3 An acquired asset; or 2.2.4 Adjoining houses and condomi nium units. lots
I

townhou ses I

row

houses I

For retail hous ing loans, the subdiv ision where sa id residentia l units are located must have complied with all the required facilities pursuant to PD No. 957 and BP No. 220. 2.3 Construction or completion of a residential unit on a lot owned by the member; 2.4 Home improvement, i.e. any alteration in an existing residential unit intended by a homeowner to be a permanent integral part thereof, which will enhance its durability and material value;

to the 2.5 Refinancing of an existing housing loan with an institution acceptab le for at history ent repaym perfect a reflects t accoun the that, Fund; provided the by ed least one (1) year prior to date of applicat ion as support borrowe r's official receipts . 2.6 Combination of loan purpose s shall be limited to the following : 2.6.1 Purchas e of a fully developed lot not exceeding one thousan d sq uare meters (1 ,000 sq. m.) and construction of a residential unit thereon; 2.6.2 Purchase of a residential unit, whether old or new, with home improvement; 2.6.3 Refinancing of an existing mortgage with home improve ment; or 2.6 .4 Refinancing of an existing mortgag e, specifically a lot loan, with construction of a residential unit thereon .

3. BORRO WER' S ELIGIBI LITY To qualify for a Pag-IBIG housing loan, a member shall satisfy the following requirements: 3. 1 On Pag-IBIG Membership 3.1. 1 Must be a member under the Pag-IBIG I Membe rship Program for at least twenty-f our (24) months , as evidenced by the remittance of at least 24 monthly contributions at the time of loan application. 3.1.2 A member who has contributed for at least two (2) years shall be required to pay the upgraded contribut ion rates upon housing loan approval and onwards . 3.1.3 A new membe r who wishes to apply for a housing loan and remit his membe rship contribu tions in lump s um shall be required to pay the membe rship contribu tion that corresp ond to the loan amount applied for to cover the 24 months membe rship requirem ent. Lump sum paymen t of membe rship contribu tions shall be conside red a single contribu tion for the applicab le month as of the paymen t date. Similarl y, a membe r who has existing monthly contribu tions that are still short of the 24 monthly membe rship requirem ent may pay his contribu tions for the succeed ing months in lump sum based on the membe rship contribu tion that corresp ond to the loan amount applied for. For purpose s of comput ing the lump sum contribu tion , the followin g contribu tion rates shall be adopted :

Members hip Contribu tion

Loan Amount Up to P500,000 Over P500,000 to P600,000 Over P600,000 to P700,000 Over P700,000 to P800,000 Over P800 ,000 to P900,000 Over P900,000 to P1 ,000,000 Over P1 ,000,000 to P1 , 100,000 Over P1 ,100,000 to P1 ,200,000 Over P1 ,200,000 to P1 ,300,000 Over P 1,300,000 to P1 ,400,000 Over P1,400,000 to P1 ,500,000 Over P1 ,500,000 to P1 ,600,000 Over P1 ,600,000 to P1 ,700,000 Over P1 ,700,000 to P1 ,800,000 Over P1,800,00 0 to P1 ,900,000 Over P1 ,900,000 to P2,000,000 Over P2,000,00 0 to P2, 100,000 Over P2 , 100,000 to P2,200 ,000 Over P2 ,200,000 to P2,300,000 Over P2,300,00 0 to P2,400,00 0 Over P2,400,00 0 to P2,500,00 0 Over P2,500,00 0 to P2,600,000 Over P2,600,00 0 to P2,700,00 0 Over P2,700 ,000 to P2,800,000 Over P2,800 ,000 to P2,900,000 Over P2,900,00 0 to P3,000,000 Over P3,000,00 0 to P3, 100,000 Over P3, 100,000 to P3,200,000 Over P3,200,00 0 to P3,300,000 Over P3,300,000 to P3,400,000 Over P3,400,000 to P3,500,00 0 Over P3,500,00 0 to P3,600,000 Over P3,600,000 to P3,700,000 Over P3,700,000 to P3,800,000 Over P3,800,00 0 to P3,900,00 0 Over P3,900,00 0 to P4,000,000 Over P4,000,00 0 to P4,100,00 0 Over P4,100,00 0 to P4,200,000 Over P4,200,00 0 to P4,300,00 0 Over P4,300,00 0 to P4,400,000 Over P4,400,00 0 to P4,500,000 Over P4,500,00 0 to P4,600,00 0 Over P4,600,00 0 to P4,700,00 0 Over P4,700,00 0 to P4,800,00 0 Over P4,800,00 0 to P4,900,000 Over P4,900,00 0 to P5,000,000 Over PS,OOO,OOO to PS,100,000 Over P5,100,00 0 to P5,200,000 Over P5,200,00 0 to P5,300,000 Over P5,300,00 0 to P5,400,000 Over P5,400,00 0 to P5,500,00 0 Over P5,500,00 0 to P5,600,000 Over P5,600,00 0 to P5,700,000 Over P5,700,00 0 to P5,800,000 Over P5,800,00 0 to P5,900,000

P200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 P950 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1,950 2,000 2,050 2,100 2,150 2,200 2,250 2,300 2,350 2,400 2,450 2,500 2,550 2,600 2,650 2,700 2,750 2,800 2,850 2,900 2,950

Over P5,900,000 to P6 ,000,000

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3.1.4 After filing the housing loan applicat ion, the membe r shall still be required to continu e remittin g monthly contribu tions based on the upgrade d rate. Howeve r, if the approve d loan amount is less than the loan amount applied for, the membe r shall pay his membe rship contribu tions that corresp ond to the approve d loan amount upon the approva l of his hous ing loan and every month thereafter. 3.1.5 For purposes of satisfying the membe rship requirem ent for housing loans, the period corresponding to the Total Accumulated Value (TAV) applied earlier to a member's outstanding loan (offsetting) shall be considered when counting the total number of monthly contributions. 3.1 .6 Pag-IBIG Oversea s Program (POP) contribu tions of Oversea s Filipino Workers (OFWs) who are Pag-IBIG I member s shall be conside red in countin g the total number of contribu tions for availme nt of housing loans. 3.2 Not more than sixty-five (65) years old at the date of loan application and must be insurable; provided further, that he is not more than seventy (70) years old at loan maturity; 3.3 Has the legal capacity to acquire and encumber real property; of 3.4 Has passed satisfactory background/credit and employmenUbusiness checks Pag-IBIG Fund ; co3.5 Has no outstanding Pag-IBIG housing loan, either as a principal borrower or borrower; However, should a co-borrower in a tacked loan signify an intention to avail of a Pag-IBIG housing loan himself, he shall be allowed to do so provided the tacked loan, as a whole, is updated and the amount proportionate to his loan entitlement has been fully paid. Hence, the co-borrower shall be released from the original obligation with the consen t of the principa l and the other coborrowe rs, and shall be allowed to avail of his own Pag-IBIG housing loan subject to standard evaluation procedu res. 3.6. Has no outstanding Pag-IBlG multi-purpose loan in arrears at the time of loan application . A member whose multi-purpose loan is in arrears shall be required to pay his arrearages over the counter to update his account. due 3.7. Had no Pag-IBIG housing loan that was foreclosed , cancelled , bought back the where cases to defau lt, or subjected to dacion en pago, which shall include . property the rs borrower is no longer interested to pursue the loan and surrende a of ail av to rs borrowe Howeve r, the Senior Manage ment may allow such new housing loan under certain meritori ous conditio ns, such as but are not limited to the followin g : 3.7. 1. Illness of the borrowe r or any of his immedia te family member s as certified by a governm ent doctor togethe r with the abstrac t or findings of the attendin g physicia n, if differen t from the certifyin g governm ent doctor. The illness under conside ration must be that which required the borrowe r to incur substan tial expense s or a prolong ed treatme nt of s uch illness which caused him/her, to fail in his/her obligati on with the Fund and eventua lly resulted in the foreclos ure of his REM accoun t, cancella tion of the CTS, or surrend er of his/her property via dacion en pago.
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3.7.2. Unemploym ent of the borrower at the time his prev ious housing loan was foreclosed , its CTS cancelled or the property s urrendered through dacion en pago, but the said borrower has now become employed and is able to meet all other eligibility c riteria. 3.7.3. Other similar meritorious cases that the Senior Manageme nt may consider.

4. LOAN AMOUNT A qualified Pag-IBIG member shall be allowed to borrow an amount up to a maximum of Six Million Pesos (P6,000,000 .00), which shall be based on the lowest of the following : the member's actual need, his loan entitlement based on capacity to pay, and the loan-to-app raisal va lue ratio. The availability of the loan package for over P3M to P6M shall be limited by the Fund's annual funding allocation for the said package. 4.1. Loan Entitlemen t Based on Capacity to Pay 4.1.1 All housing loan borrowers shall be evaluated based on their capacity to pay, which shall be supported by the following documents : a. For Locally Employed, any of the following: a.1 Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached W2 form , stamped received by the BIR. In view of Revenue Regulation 2-98, employees receiving purely compensation income may instead submit the BIR Form 2316 or the Certificate of Compensation Paymentrrax Withheld filed by their employers with the BIR. The following, however, are not qualified for substituted filing and therefore still required to file BIR form 1700: a.1.1 individuals with two (2) or more employers, whose taxes during the year did not result to tax withheld = tax due. a.1.2 individuals whose income tax has not been withheld correctly. a.1.3 individuals whose spouses fall under a.1.1 and a.1.2 above. a.1.4 individuals deriving other non-business, non-professionalrelated income in addition to compensation income not otherwise subject to final tax a.2 Notarized Certificate (employer's format) . of Employment and Compensation

For governm ent employee s, both the Notarized Certificat e of Employm ent and Compens ation, and latest one (1) month payslip shall be required. a.3 Other income documents that the Fund may prescribe. b. For Self-Employed Income Tax Return and Audited Financial Statements and Official Receipt of tax payment from bank, DTI Registration , Mayor's Permit c. For OFW Members c.1 Employment Contract (EC), which shall be supported by an English translation if written in a foreign language other than the English language;

c.2 Certificate of Income duly certified by the employer; Proofs of income certified I initialed as true copy of the original by the assigned Pag-IBIG Information Officer shall be accepted for evaluation. 4.1.2 A member's loan entitlement shall be limited to an amount for which the monthly repayment shall not exceed thirty-five per cent (35%) of the borrower's gross monthly income for loans not exceedin g P1 ,250,000 and thirty percent (30%) of the borrower 's gross monthly income for loans exceedin g P1 ,250,000. In case of tacked loans, the individua l gross monthly income of at most three borrower s shall be considere d . 4.1 .3 For governm ent employee s who will be paying their loan amortiza tion through salary deductio n, their Net Take Home Pay must not fall below the minimum requirem ent as prescribe d by the General Appropri ations Act (GAA).

4.1.4 A maximum of three (3) qualified Pag-IBIG members may be tacked into a single loan which is secured by the same collateral ; provided , they are related within the second civil degree of consanguinity or affinity. However, other co-borrow ers not related to the principal borrower may likewise be allowed, subject to the following : a. Approval of the HDMF Branch Manager or higher level of authority ; and b. Said co-borro wer shall be a co-owner of the property s uch that the Original Certificat e of Title (OCT), Transfer Certificat e of Title (TCT) or Condomi nium Certificat e of Title (CCT) is registere d in his name and in the name of the principal borrower .

4.2 Loan-to-A ppraisal Value Ratio 4.2.1 The ratio of the loan amount to the appraisal value of the collateral shall be based on the following :

Loan Amount Up to P1 , 250, 000 Over P1 , 250, 000 to P6, 000, 000

Loan-to-Ap praisal Value Ratio 90% 80%

4.2.2 For developer-assisted housing loans up to P400,000, the loan-toappraisal value ratio shall be 100%; prov ided , the developer's License to Sell is for a s ocialized hous ing project and the borrower's housing loan purpose is for the purchase of a residential unit. 4.2.3 The Loan-to-Ap praisal Value Ratio may be adjusted depending on the result of the Borrower's Evaluation System (BES). 5. INTEREST RATE Pag-IBIG housing loans s hall be charged with interest rates based on the Fund's pricing framework . Said interest rates shall be re-priced periodically depending on the c hosen re-pricing period of the borrower whether it is after every t hree (3), five (5), ten (10) or fifteen (15) years .

6. LOAN TERM

The loan shall be repaid at a maximum term of thirty (30) years and shall, in no case, exceed the difference between the present age and age seventy (70) of the principal borrower.
7. LOAN PAYMENT 7.1. The loan shall be paid in equal monthly amortizations in such amounts as may fully cover the principal and interest, as well as insurance premiums, over the loan period , and shall be made, whenever feasible, through salary deduction. 7.1.1. The borrower shall execute the Authority to Deduct the monthly loan amortization from his salary, and shall secure the conforme of his employer for the purpose. 7.1.2. Pag-IBIG Fund and the employer shall enter into a Collection Agreement stipulating, among others, that the deduction for the employee's Pag-IBIG housing loan shall have priority over other obligations of the same nature after all statutory deductions have been effected. 7.1.3. In case of salary deduction, an equivalent of one (1) month amortizatio n shall be deducted from the loan proceeds upon loan takeout. 7.2. The monthly amortizatio ns may also be paid to Pag-IBIG Fund through any of the following modes: 7.2.1 Post-dated checks (POCs) issued by the borrower, co-borrowe r or relatives up to the first c ivil degree of affinity or consangui nity, initially to cover the first twelve (12) monthly amortizatio ns . PDCs

must be dated on the date that coincide s with the date of loan takeout (DV/Chec k Date); 7.2.2 Collectio n Servicing Agreeme nt (CSA) w ith accredite d developers; 7.2.3 Over-the- counter; 7.2.4 Auto debit arrangement with banks ; or 7.2.5 Any other collection sy stem which the Fund may implemen t in the future. 7.3 The borrower may change his mode of payment subject to the approval of the Billing and Collection Department or the Loans and Contribution Management and Recovery Division (LCMRD) . However, in case a borrower altered the same from Over-the Counter (OTC) to Salary Deduction (SO) or from Post Dated Checks (PDCs) to SO, he shall be required to pay a one (1) month advance amortization. Regardless of said modification, the borrower's original due date shall be retained . 7.4 The first monthly amortization shall commence on the month immediately following loan takeout (DV/Chec k Date). The monthly payments shall be paid on the date that coincides with the date of loan takeout (DV/Chec k Date). For staggere d releases, the payment of the first loan amortiza tion shall commen ce on the month following the DV/Chec k Date of the final loan release, and every month thereafte r. 7.5 Should the due date fall on a non-working day, the monthly payments shall be paid on the first working day after the due date. 7.6 Staggered payments for an amortization period shall be allowed provided the amortization is paid in full on or before the due date. 7.7 In case of tacked loans where a co-borrower is released from the original loan obligation , the principal borrower may request for the adjustment of his monthly amortization based on the outstanding balance of the loan, interest rate at the time of re-compu tation and the remaining term of the loan. 7.8 The borrower who fails to pay the full monthly amortization and/or other loan obligations when due shall pay a penalty of 1120 of 1% of the amount due for every day of delay. 7.9 The upgraded membership contributions for loans exceeding Five Hundred Thousand Pesos (P500 ,000.00), net of the mandatory contributions (except in the case of ind ividual payors I self-employed who shall be shouldering both the EE and ER share) shall be paid together with the borrower' s monthly amortization and shall be considered as contributions for the applicable month. 7.10 A borrower's monthly payments shall thus be applied according to the following order of priority: a) b) c) d) e)

Mandatory and/or Upgraded membership contributions, if applicabl e

Penalties Insurance premiums Interest, and Principal.

8. COLLATER AL The loan shall be secured by collateral consisting of the same residential properties to which the loan. proceeds are applied. 8.1. For retail accounts, the security shall consist of a First Real Estate Mortgage (REM) on the subject properties fully covering the payment of the obligation as stipulated in the corresponding loan agreement and promissory note of the borrower. 8.2. Accommodation mortgages shall be allowed only for borrowers who are related up to the second civil degree of consanguinity or up to first civil degree of affinity of the principal borrower, subject to the following requirements: a. The owner shall constitute the first mortgage as accommodation mortgagor, to secure the borrower's loan obligation or give the latter the special power to do so; and b. The borrower shall undertake and sign as co-mortgag or, to fully cover the residential unit and improvements thereon. 8.3. The property subject of the loan shall be appraised by Pag-IBIG Fund. 8.4. The property must be covered by an Original Certificate of Title (OCT), Transfer Certificate of Title (TCT) or Condomin ium Certificate of Title (CCT) issued by the Register of Deeds, free from all liens and encumbran ces, except those that are subject of an heir's lien under Section 4 Rule 74 of the Rules of Court; and must be registered in the name of any one or more of the borrowers except accommod ation mortgages . In case of Third Party REM or accommod ation mortgage, the correspond ing title shall be registered in the name of the landowner. Properties that are subject of an heirs lien under Section 4 Rule 74 of the Rules of Court may be accepted by Pag-IBIG Fund as security for the loan provided that the borrower/s shall put up a surety bond (not an heir's bond) that shall answer for the payment of the outstandin g loan obligation still due to the Fund in the event that another person including an heir of the registered owner would lay a claim against the property offered as security. 8.5. The real estate taxes on the property must be updated as of the quarter immediately preceding the date of loan application , and yearly thereafter during the term of the loan. To ensu re that the real estate taxes on the mortgaged property are updated, Pag-IBIG Fund shall require the borrower to submit a copy of the official receipt of the real estate taxes paid for the preceding year not later than April 30 of the succeeding year. Failure of the borrower to submit proof of payment of the real estate taxes for the year shall render the outstanding loan due and demandable .

9. INSURANCE and The borrower shall be compulsorily covered by mortgage redemption insurance fire insurance: 9.1. Mortgage Redemption Insurance MRI - A borrower who is not beyond sixtyfive (65) years old at the date of housing loan application shall be covered by the MRI, provided , that he shall not be over seventy (70) years old on his birthday nearest the date the original housing loan expires. The MRI coverage of the borrower shall be subject to the schedule of insurance in the Pag-IBIG Fund Master Policy. In the case of borrowe rs who are tacked into a single loan, the principa l borrowe r and his co-borrowers sha ll each be covered by the MRI to the extent of their individu al loan entitlem ents. As such, the MRI premium shall be the aggrega te of the premium s corresp onding to each borrowe r. Thus, should any of the borrowe rs die, only his portion of the entire loan shall be extingu ished by MRI. 9.1.1. Interim Coverage The interim MRI coverage on the principal borrower and the coborrowe r/s under the automatic coverage system shall take effect on the date of the issuance of the Notice of Approval (NOA) or Letter of Guaranty (LOG) by Pag-IBIG Fund. 9.1.2. Regular Coverage a. The regular coverage shall be a non-medical yearly renewable term insurance (YRT) for which Pag-IBIG housing loan borrowers shall pay a uniform premium rate effective on the date of loan-takeout. The amount of coverage shall be the original amount of the loan.

b. 9.2.

Fire and Allied Perils Insurance - The borrower shall obtain fire and other allied perils insurance on the property mortgaged for an amount equivalent to the appraised value of the residential unit or the loan amount, whichever is lower. Premium Payments - The annual premium for the first year of coverage shall be prepaid and shall be deducted from the loan proceeds upon loan takeout. Premiums due for the second year, and every year thereafter that the insurance coverage is in force shall be prepaid on a monthly basis and shall be collected together with the monthly loan amortization. No Evidence Limit (NEL) - The NEL shall be P2 ,000,000 . As such, all borrowers up to 60 years old with loans of up to P2,000 ,000 shall no longer be subjected to underwriting approval. The following borrowers shall be required to accomplish and submit a Health Statement Form to be filled out by the applicant in his own handwriting, duly signed and dated, and witnessed by one person: 9.5.1 . Borrowers over 60 years old;

9.3.

9.4.

9.5.

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9.5.2.

Borrowers with loans over two million pesos (P 2.0M) up to six million pesos (P 6.0M); OFW who is over sixty (60) years old - The applicant shall also be required to submit a copy of the result of his medical examination conducted prior to his assignment overseas as required by his employment agency. Shou ld the applicant's health be found "sub-standard", the corresponding sub-standard rating shall be applied , and the applicant shall also be charged the additional extra premium .

9.5 .3.

9.6.

The Fund shall no longer renew the MRI of the principal borrower and his co-borrow er/s once the subject property has been auctioned off. Nonethel ess, the principal borrower and his co-borrow er/s shall still be covered by the MRI until such time that the unexpire d premium s have been utilized.

10.PREPAYMENT 10.1. A borrower shall be allowed to prepay his loan in full or in part without prepayment penalty, pursuant to Republic Act 7394. 10.2. Accelerated payments - Any amount in excess of the monthly amortization due shall be treated as future amortizat ion. However, upon request of the borrower and provided the amount to be applied is equivalen t to at least one monthly amortizat ion, said amount shall be applied to the principal. The treatment of excess payment the borrower prefers must be noted on/properly disclosed in the Pag-IBIG Fund Receipt (PFR).

11. DEFAULT 11 .1. The borrower shall be considered in default when he or any of his coborrowers fails to pay any three (3) consecutive monthly amortizations and/or monthly membership contributions and other obligations on the loan. 11 .2. At point of default, the outstanding loan, together with accrued interest, penalties, fees and other charges, shall become immediately due and demandable. The said amount shall likewise be subject to the following : 11 .2.1. The unpaid monthly payments shall continue to be charged with a penalty equivalent to 1/20 of 1% of the amount due for every day of delay. 11 .2.2. It shall continue to bear interest at the stipulated rate from the time the outstanding loan become due and demandable. 11 .3. While the account remains to be due and demanda ble, the member shall not be allowed to avail any of the HDMF loan programs ; except in case of availmen t of Multi-Pur pose Loan (MPL) where the purpose is to update his/her housing loan.

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11 .4. In case of default, the following remedies may be adopted : 11.4.1. Pag-IBIG Fund shall endorse the account to foreclos ure; or 11.4.2. The principal borrower may enter into a Deed of Sale with an eligible Pag-IBIG housing loan borrower . 11 .5. Prior to the filing for Petition for Extra-Jud icial Foreclosu re, the delinque nt member' s Total Accumul ated Value (TAV) and his coborrower's , if any, shall be applied to his outstand ing housing loan obligatio n, except if the borrower/co-borro wer has an ex isting MPUCala mity Loan. If there is existing MPUCala mity Loan , the TAV to be applied to the hous ing loan obligatio n shall be net of the outstand ing MPUCala mity loan obligatio n plus six (6) months worth of estimated penalties and interest. This shall apply regardles s of the status of the MPUCala mity Loan. 12. LOAN CHARGES The borrower shall pay a Processing Fee of Three Thousand Pesos (P3,000.00), which shall be paid as follows: 12.1 One Thousand Pesos (P1,000.00) upon filing of the loan application , which shall be non-refundable if the loan is disapproved; 12.2 Two Thousand Pesos (P2 ,000 .00) upon loan takeout.

13. SUCCEEDING AV AILMENT A Pag-IBIG member may avail himself of another Pag-IBIG housing loan provided he has fully paid his previous housing loan, whether as a principal borrower or as a co-borrower.

14. ADDITIONAL LOANS 14.1. Additional loan shall be herein defined as a housing loan availed while there is still an existing housing loan. 14.2. A member who is updated with his monthly contributions as well as his monthly housing loan amortizations as of date of application for additional loan shall be eligible for the said loan. 14.3. A qualified Pag-IBIG member who has an existing housing loan may avail himself of an additional housing loan for the following purposes: 14.3.1 . house construction on a lot purchased/refinanced through a Pag-IBIG housing loan; 14.3.2. home improvement; or 14.3.3. purchase of lot I house and lot I condomi nium unit I townhous e I row house adjacent to the property mortgaged with the Fund. In
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case of vertical developme nt, this may also include the purchase of a parking lot. 14.4. An eligible member shall be allowed to borrow an additional loan; provided, the resulting monthly repayment of the consolidate d loan, namely, the original loan availment and the additional loan, shall not exceed thirty-five per cent (35%) of the borrower's gross monthly income for consolidate d loans not exceeding P1 ,250,000 and thirty percent (30%) of the borrower's gross monthly income for consolidate d loans exceeding P1 ,250,000. 14.4.1. If the original loan was taken out prior to 23 November 2006 and the additional loan was availed under these guidelines, the additional loan shall be treated as separate and distinct from the original loan. Hence, the original loan shall be subject to the interest rates prevailing at the time said loan was taken out while the additional loan shall be charged with the interest rates provided in these guidelines. 14.4.2. The additional loan shall be consolidated with the original loan for the following accounts: a. If the original loan was taken out under HDMF Circular No. 219 or any of the succeeding issuances; or b. If the original loan was taken out under the "Magaang Pabahay" Program Thus , the consolidated loan shall consist of the additional loan and the outstanding balance of the original loan as of the date of the additional loan's final release. It shall be charged the corresponding interest rate provided in these guidelines. 14.5. For consolidated loans, the borrower shall continue paying the original amortization until such time that the additional loan is completely released. However, upon full release of the additional loan, the new amortization shall be based on the consolidated loan as provided for in Section 14.4 hereof. 14.6. Inclusive of the value of improvements to be introduced, the loan-toappraisal value ratio shall not exceed the corresponding rate stipulated in Section 4.2.1 hereof. 14.7. The consolidated loan shall be charged with the corresponding interest rate provided for in Section 5 of these guidelines. 14.8. The additional/consolidated loan shall have a loan term in accordance with the provisions stipulated in Section 6 hereof. 14.9. The additional loan shall be secured by the same collateral as that of the original housing loan. The borrower shall execute an Addendum to the First Real Estate Mortgage on the subject property to fully cover the payment of the additional/consolidated loan as stipulated in the corresponding loan agreement and promissory note of the borrower. For a CTS account originally taken out under the "Magaang Pabahay" Program , the consolidated loan shall be secured by a First Real Estate Mortgage on the subject property to fully cover the payment of the obligation
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.as stipulated in the corresponding promissory note of the borrower. In connection thereto, the borrower shall pay for the unpaid monthly payments that would cover the expenses to be incurred in the conversion of the CTS to REM . The consideration of the Deed of Absolute Sale shall be the contract price appearing in the CTS, while that of the Loan and Mortgage Agreement shall be the consolidated loan amount. 14.10. The member shall be charged with fees as provided for in Section 12 hereof. 14.11 . A member may only avail of the additiona l loan once during his loan term. 15. EFFECTS OF MEMBERSHIP TERMINATION ON AN OUTSTANDING HOUSING LOAN 15.1 . Application of Member's TAV A member whose housing loan is taken out under this Circular shall not be allowed to withdraw his TAV if he has an outstanding housing loan with PagIBIG Fund as of the date of membership/savings withdrawal. He shall be given the following options: 15.1.1. Pay off the outstanding housing loan balance and withdraw his accumulated savings; 15.1.2. Continue amortizing the loan until it is fully paid, provided that the account is updated. The member can withdraw his accumulated savings only upon full settlement of his loan obligatio n; or 15.1.3. Apply the accumulated savings to the outstanding loan balance. Meanwhile, withdrawal of TAV for a member whose account was taken out under earlier Pag-IBIG Fund housing programs shall be governed by the guidelines prevailing at the time of loan takeout. 15.1.4. For Accounts released from 1 March 1999 up to 8 November 2001 (taken out under HDMF Circular Nos. 171 and 178) In case of membership termination due to membership maturity, permanent departure from the country, retirement, total disability or insanity, Pag-IBIG Fund shall effect automatic application of the member's TAV to the outstanding housing loan balance, regardless if the account is updated or in arrears. 15.1.5. For Accounts released from 9 November 2001 to 19 July 2004 (taken out under HDMF Circular Nos. 189, 189-A, and 189-8) Upon membership termination on the grounds of membership maturity, permanent departure from the country, retirement, total disability or insanity, Pag-IBIG Fund shall automatically apply the member's total accumulated savings to his outstanding housing loan, only if the account is in arrears.

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In all cases, should there be any unpaid loan balance after the member's total savings have been offset against the loan, Pag-IBIG Fund shall require the borrower to pay the balance either in full, or under a revised amortization scheme, for a period not longer than the remaining term of the loan. Should the borrower opt for the latter, he shall be required to pay his monthly membership contributions until the loan obligation is fully settled , in accordance with the terms and conditions of the loan agreement. 15.2. Application of Insurance Proceeds In the event of death, Pag-IBIG Fund shall apply the proceeds of the member's mortgage redemption insurance (MRI) to his outstanding housing loan balance, and the excess, if any, shall be paid to the member's designated beneficiaries. In case the insurance proceeds shall not be sufficient to pay the member's housing loan balance fully, the Fund shall offset the remaining amount against the member's TAV. Should the member's TAV still not suffice, the Fund shall require the member's heirs/beneficiaries to settle any remaining balance in full or under a revised amortization scheme for a period not longer than the remain ing term of the loan.
16. OTHER PROVISIONS

16.1 Alignment of Pag-IBIG Fund Special Housing Loan Facilities with these guidelines. Provisions on the eligible borrower's age, membership contributions, loan term and interest rate of Special Housing Loan Facilities shall be aligned with these guidelines. All other provisions as stated in the respective guidelines and Memorandum of Agreement of the Pag-IBIG Fund Special Housing Loan Facilities that are not inconsistent with these guidelines shall continue to be in effect. 16.2 All accounts documented by the developers prior to 2 July 2012 shall be processed under the old guidelines; provided, an inventory list will be submitted on or before 31 July 2012 ; provided further, that the same accounts shall be delivered for takeout not later than 31 December 2012.
16.3 Any ambiguity in the implementation shall be resolved by the Department Manager Ill concerned , or escalated to next higher approving authorities .

17.AMENDMENTS

These guidelines may be amended, revised or modified by the Pag-IBIG Fund Senior Management Committee in furtherance of the objectives of the program, provided that the amendments. revisions or modifications herein adopted are consistent with the mandate of the Fund under its charter and existing laws.

18. REPEALING CLAUSE

All memoranda , rules, regulations, and other issuances inconsistent herewith are hereby repealed. amended or modified accordingly.

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19. EFFECTIVITY
These guidelines shall take effect on 2 July 2012.

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ATTY. DARLENE MARIE B. BERBERABE
Chief Executive Officer

Makati City UNE - - ' 2012 J:...::..---=--6 _ __::

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