THE HOME Development Mutual Fund (Pag-IBIG Fund) reported home loan payments rose 12% to a record-high P30.44 billion in the first six months of 2019.

“We were able to sustain our momentum from 2018, which is our best year yet. In the first half of 2019, home loan payments averaged P5.07 billion per month which is considerably higher than the P4.53 billion average last year,” Eduardo D. del Rosario, who heads both the Housing and Urban Development Coordinating Council (HUDCC) and Pag-IBIG Fund Board of Trustees, said in a statement.

Mr. del Rosario noted that the Pag-IBIG Fund got off to a good start this year, when home loan payments reached P5.4 billion in January and hit P5.99 billion in May.

“Robust collections reinforce Pag-IBIG Fund’s financial sustainability. The amount we collected are then plowed back to our housing portfolio so that more members can avail of a home loan from Pag-IBIG Fund,” he added.

Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said the improved collection efficiency allowed the agency to hit a record high performing loans ratio (PLR).

As of June, Pag-IBIG Fund’s PLR stood at 90.60%, the highest it ever recorded. Mr. Moti noted this shows nine out of 10 of its home loan borrowers regularly pay their monthly amortization.

In 2012, the fund’s PLR was at 75%. The fund’s PLR reached 90% for the first time in 2017, then hit 90.23% in 2018.

“Our portfolio is unique in the sense that we cater to minimum wage earners who are usually unserved by most lending institutions because of their financial situation. Despite this, we are happy to report that our efforts to maintain efficiency of collections enabled us to keep our performing loans ratio at above 90 percent,” Mr. Moti said.

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