Pag-IBIG cuts processing of housing loans to 1 day

“Pag-IBIG members availing themselves of housing loans need not wait for 30 days to get their claims because applications will be processed within 24 hours, according to Pag-IBIG.”

By Rea Cu

August 19, 2016

businessmirror.com.ph

The Home Development Mutual Fund (Pag-IBIG) on Friday announced it is reducing claims-processing time from a previous 30-day period to just one day, in line with the President’s directive of reducing the processing time of documents in all government agencies.

Pag-IBIG members availing themselves of housing loans need not wait for 30 days to get their claims because applications will be processed within 24 hours, according to Pag-IBIG.

“Pag-IBIG Fund is continuously implementing reforms and introducing innovative programs that would ensure the provision of more benefits to Pag-IBIG members,” said Darlene Marie B. Berberabe, Pag-IBIG Fund president.

Among the improvements the agency adopted to better serve its members is the increase in burial benefits of housing loan borrowers by 10 percent. Instead of a previous burial benefit of P20,000, members are now given P22,000.

In June this year  Pag-IBIG successfully renegotiated the increase of the burial benefit under its Mortgage Redemption Insurance (MRI) for members who are housing-loan borrowers.

The MRI deems the housing loan fully paid upon the death of the borrower, provided that amortization payments are up-to-date.

The new insurance of Pag-IBIG also fully pays the loan upon determination of total permanent disability, provides amortization support of P500,000 in case of terminal illness, and grants experience refund where 20 percent of the insurer’s profits are refunded to the insured borrower.

The fund also recently signed a Memorandum of Understanding (MOU) with the Bureau of Internal Revenue (BIR) to help expedite the faster processing of housing-loan applications and improve the services offered by the two agencies.

“We are glad that this agreement between Pag-IBIG and the BIR complies with the directive of President Duterte to significantly cut government processes for the benefit of the transacting public,” she said.

Pag-IBIG received authorization from the BIR to electronically file tax returns using electronic BIR forms and to secure Electronic Certificate Authorizing Registration (eCAR) on behalf of its member-borrowers.

Former BIR Commissioner Kim S. Jacinto-Henares issued Revenue Memorandum Order 28-2016 for the policies, guidelines and procedures in the implementation of the agreement, which was affirmed recently by current BIR Commissioner Caesar R. Dulay. Pag-IBIG Fund is the first institution granted an eCAR arrangement by the BIR.

“Some of our member-borrowers are on a ‘no work, no pay’ employment and skipping work just to complete the housing-loan requirements will have an impact on their salary. With this arrangement, Pag-IBIG housing-loan borrowers will no longer have to personally go to the BIR to apply for the issuance of eCAR, saving them precious time and resources,” Berberabe added.

Read more: http://www.businessmirror.com.ph/2016/08/19/pag-ibig-cuts-processing-of-housing-loans-to-1-day/

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