THE Home Development Mutual Fund, beter known as the Pag-IBIG Fund, said net profit in the first half grew 13% year-on-year.
In a statement, the state-run housing lender recorded a P13.3 billion net income as of end-June, aided by improved collections resulting from its tie-ups with third-party collection agents.
Pag-IBIG Chief Executive Officer Acmad Rizaldy P. Moti said in a statement: “Pag-IBIG’s increased income for the first half of 2017 was due in part on the increased housing loan collections worth P20.46 billion. This is 10% higher, or P1.8 billion more than the P18.66 billion collected for the same period last year.”
The housing lender first partnered with third-party collectors in 2013. As of end-June, Pag-IBIG said that it has 20 accredited collecting agencies that have collected a total of P2.2 billion.
Outsourced tele-collection services generated P3 billion during the same period.
“The high collection rates in housing loan amortizations led to Pag-IBIG’s single-digit non-performing loans ratio, or 9.8%. Pag-IBIG has maintained its high collection efficiency ratio of 90.2%,” it said.
““With President Rodrigo Roa Duterte’s directive to streamline government processes, it is
commendable that Pag-IBIG is taking steps to make sure that its members are readily served,” Housing and Urban Development Coordinating Council (HUDCC) Chairperson Eduardo D. del Rosario was quoted in a statement as saying.
Pag-IBIG earlier reported that its housing loans grew 17% year-on-year to P28.8 billion in the January to June period, which translated to 36,139 families who have availed of the loan product.
Mr. Moti earlier said that the agency aims plans to sign mortgage agreements on 82,000 housing units before the close of the year, equivalent to about P65 billion in housing loans, up 13% from the P57.31-billion housing loan takeout recorded in 2016, which covered 77,503 borrowers.
Takeout is the process by which a mortgage lender such as Pag-IBIG pays the owner of the unit – usually a developer or the loan-originating bank – thereby taking ownership of the property while assuming responsibility for collecting on the mortgage. – Elijah Joseph C. Tubayan