A total of 22,123 members of the Home Mutual Development Fund (Pag-IBIG) with a collected housing loan value of P14.4 billion are at risk of losing their homes.
Stated in COA’s 2017 audit report, Pag-IBIG Fund failed to remind housing developers to convert the members’ contracts-to-sell (CTS) to real estate mortgages (REM) within the allowed period required under HDMF Circular No. 259, reported GMA News.
COA has already warned the management of the Home Mutual Development Fund regarding the fault.
According to COA, 10,484 accounts from the San Fernando, Pampanga Housing Hub, 7,077 from the National Capital Region Home Lending Operation, 4,016 from the Cebu Housing Hub, and 182 accounts the La Union Housing Center, will be affected by the possible home foreclosure.
COA also said that “exposure of borrower’s property ownership at risk, delay and difficulty in the redemption, foreclosure and disposal of the properties, and non-recovery of the Fund’s investment in housing” caused the problem.
“Due to deficiencies noted, titles of the mortgaged properties have not yet been transferred in the name of the buyer-borrowers, hence, annotation of the REM could not be done by the Register of Deeds,” GMA quoted COA.
COA further said: “Thus, non-conversion of the accounts from CTS to REM is contrary to HDMC Circular No. 259 as amended and detrimental to the interest of the updated housing loan borrowers as their ownership over the property is exposed to risk.
