Some Negative Effects of the Housing Loan Condonation Bill endorsed by House Speaker Prospero Nograles

We may herald the positive effects of this Housing Loan Condonation Bill endorsed by House Speaker Prospero Nograles as very beneficial to delinquent borrowers since this Bill will condone the penalties and interest accumulated due to non-payment of its monthly amortization. Who would refuse such opportunity when it’s beneficially offered? Who would refuse when foreclosure in this Bill would be suspended giving the borrowers another chance to save their house of abode?

Who can blame the House Speaker in endorsing such bill to the Congress when this Bill would really benefit thousands of housing loan borrowers? Who would blame other political leaders in riding the same bandwagon just to be noticed when the national election is coming soon? Who would blame the media in hyping the same topic over the airwaves just for a higher station rating without consulting the affected agencies first and doing some research to give light and fairness to the tackled topic?

But do they really took the time and evaluate the Bill’s negative effects?

BORROWERS LEARNING IRRESPONSIBILITIES

Penalties and interest is a vehicle to pressure housing loan borrowers to pay their monthly amortization. Remove this pressure and they will delay their payment in their monthly amortization. Execute this scheme and they will prioritize in their budget their due.

Let me take for example the case of Pag-IBIG Fund. Loan borrowers of this housing institution are charged with two interest rates in their loan availment. A lower interest rate is charged when payment is made before the 15 days grace period after the due date. And they called this a discounted rate. But when payment is committed after the 15 days grace period the same loan availment will be charged with a higher interest rate.

A borrower whose loan availment amounting to Three Hundred Forty Four Thousand (P344,000.00) for example will be billed Two Thousand Two Hundred Fifty Nine Pesos and 61/100 (P2,259.61) a month if he will pay his amortization before the 15 days grace period after the due date. This is under the 6% per annum interest rate (lower rate) of his loan availment. But if he fails to pay after the grace period his amortization will jump to Two Thousand Seven Hundred Twenty One Pesos and 30/100 (P2,721.30). This is under the higher interest rate of 8% per annum (higher rate). This method is effective in their collection effort.

If this Condonation Bill pushed by House Speaker Nograles will become a Law do you think these borrowers will prioritize their monthly amortization? I don’t think so. In fact, even now that this Bill is still a bill some housing loan borrowers choose not to pay their amortization dues waiting for this Bill to become a Law. In other words they choose to be irresponsible.

BORROWERS FACES FORECLOSURE

Housing loan borrowers put all their stakes to this Bill since they are so willing to lag their amortization. Good if this Condonation Bill becomes a law as soon as possible for all their penalties and interest will be cancelled. But if not their housing units will be foreclosed. Who is then on the losing side? Isn’t the housing borrowers? For sure housing agencies both government and public alike will initiate foreclosure as a last resort to recover funds if delinquencies are already so high.

BANCRUPCY OF HOUSING LOAN AGENCIES

One of the inclusions of this Condonation Bill is the suspension of foreclosure proceedings. As an effect the collection of the housing loan agencies will collapse and eventually will cause their disbandment. Take for example National Home Mortgage Finance Corporation (NHMFC). Their Unified Housing Loan Program (UHLP) which was created to be a continuous self-sustaining program through repayments of its borrowers was a failure due to high delinquencies. To recover these delinquencies NHMFC sold to Balikatan Housing Finance, Inc (BHFI) these highly delinquent accounts.

One agency that would surely be hit by this Bill is Pag-IBIG Fund. Considering that a member is just to have a fund of Four Thousand Eight Hundred Pesos (P4,800.00) (total contribution of employee with employer counterpart for two years) in his membership to avail a loan of up to Five Hundred Thousand Pesos (P500,000.00). Now where did Pag-IBIG Fund get the money? Of course, from the other members of the Fund. If this sole borrower will not pay his amortization and these members where the funding comes from will withdraw his membership/funds where would Pag-IBIG Fund get the money to release to these members? Now multiply the number of delinquent members, what will happen to the agency?

 

There are more other negative effects that I have not explored. But for the sake of arguments I have enumerated what are very obvious. I pray that these might become an eye-opener to the author and supporters of the Bill. And if we are not keen enough to learn what transpired around us this Bill might pave the way for economic collapse like what happened to United States. This time it will be the Philippines.

What Forgiveness is All About

 

By God’s grace I learned what forgiveness is all about.

When my ex-bestfriend and his wife started coming over to join the church service where I’m also attending I said to myself they are just visiting the church. They will not stick longer because they have already asked the pastor’s release before they left the church some years ago. But when they keep coming back for succeeding Sundays I began to have some doubts.

Some years ago they asked our pastor’s blessing and release to join a church near their house which of course is the very practical thing to do. But after some time, I learned that they have maligned our pastor and our church. Good that some church members had the nerve to ask me if what they heard were true. Since I knew the real story I defended the pastor and the church. But what they did made me so angry that when they visited me again they sense my distance. They made an issue out of that incident too without asking me or themselves why I reacted that way.

Now that I can see them every Sunday I am checking myself if that same anger still present in my heart. I’m a little bit surprise in what I discover: there’s no trace of it left. In fact, I cannot even recall the details of the slander made nor the people who informed me about it. The only thing I recall is that they have done something slanderous that almost divide the church but as for its detail none.

Someone might dare say that I still don’t forgive them. Well I dare say also that I have forgiven them long time ago. It’s not me to dwell on bitterness against someone. You see if I have remained bitter I am giving them power over my life. I would have keep dwelling on what they did even in my idle moments leaving me angrier and bitter while they on the other hand would have enjoyed serenity unmindful of the effects of what they did. In this case who’s on the loosing side? Me, of course. So I have faced my issues, released my forgiveness and made use of my time planning for productivity instead of wallowing in bitterness.

But during those years that we haven’t met each other I was not very sure if I have totally forgiven them. Now I’m pretty sure. Their presence made it very clear. I’m free from their emotional fetters. I’m no longer affected.

Response to the Letter Complaint of Councilor Dayanghirang against NHMFC, HUDCC and Balikatan Housing Finance, Inc.

Yesterday, Councilor Danny Dayanghirang in his column “This is it” printed in Mindanao Times enumerated points why he filed a letter complaint to Atty. Humphrey Monteroso, Deputy Ombudsman for Mindanao against HUDCC and NHMFC for the foreclosure proceedings executed by Balikatan Housing Finance, Inc. (BHFI).

Since I’ve been following this same issue which was first raised by House Speaker Prospero Nograles may I then go over Councilor Dayanghirang’s views one by one to shed some light into it in fairness to the agencies concerned.

He said that, “The objective of the program (which he identified as Socialized Housing Program) of the government for active members was defeated when thousands of accounts were later transferred to Balikatan Housing Finance, Inc. which in turn initiated foreclosure proceedings against those who have delayed payments of their amortization.

May I point out that National Home Mortgage Finance Corporation’s (NHMFC) Unified Home Lending Program (UHLP) is not a socialized housing program but a low-cost or affordable housing program. It was not created to address the needs of poverty but it was created to be a self-sustaining, continuous housing program through repayments by its borrowers. But sad to say, high volume of delinquencies defeated the purpose of the program instead causing its termination.

Foreclosure is only the last resort to recover the delinquencies which was already long overdue.

 “…… It (foreclosure) must be carried out with understanding and consideration of the present economic status of the landowners.”

Is 10 to 15 years leeway of delinquencies not understanding and consideration enough? If it is not then what is it? And if you will visit the location of these accounts the homeowners already introduced improvements. Some occupants are already assumers which mean the original borrowers have capitalized their properties without settling their housing accounts in NHMFC.

According to my research, BHFI had introduced refinancing schemes that any homeowners can avail if they will just visit their office.

“… The interest rate chargeable to the homeowners was changed from 9% to 14%… is clear violation of the terms imposed in the original contract….”

Because what is involved are highly delinquent accounts and the program is a recovery & refinancing program why would they question the interest rate? If they have paid the original monthly amortization religiously that usually ranges from approximately One Thousand (P1,000.00) to One Thousand Five Hundred (P1,500.00) Pesos their accounts will not be transferred to BHFI and the interest rate will remain a 9% per annum.

According to the Loan Mortgage Agreement (LMA) they signed, failure to pay monthly amortization in three (3) consecutive months the total amount of the loan is due and demandable. Now who’s violating the contract?

“… confront the officers who are responsible to the transfer of accounts from Government to Private Corporation which I believe is illegal…..”

One of the agreements stipulated in the Loan Mortgage Agreement, the Originating institution where the loan originates has the right to transfer the accounts without prior notice to the borrower. Where’s the illegality in that?

I think Councilor Danny Dayanghirang and the rest of the media must grab a copy of the LMA and have a thorough reading before lambasting any housing institution (government and private alike) that institute foreclosure proceedings. Though their motive is to help these delinquent homeowners (tolerance of non-payment is not helping to me) they should not be too slanted in their views. They should do some more research first to have a clear view of the different angles of the issue.

Stop Being a Messiah

Some people ought to know what self-responsibility means. So stop being a Messiah because you are not. People will act irresponsibly when you are always there to catch them when they fall and shield them from the ill effects of their own decisions. If they want to live a comfortable life, teach them how to be industrious. If they want to indulge in their whims they should learn how to support it on their own. If they want big family, they should be ready to provide its need. If they want to have pets, they should learn how to care of its needs too. If they want to eat good food, they should pay for it. If their income is barely able to supply what they need then they should live within its limit. If they violated someone’s rights they should learn how to say “I’m sorry”. You should not do all of these for them because you are not directly responsible of their lives.

They are lazy because you are always there to work for them. They indulge in vices because you tolerated and supported them. They still cling on you and depended on you even they already have their own family because you felt good and needed when they ran to you even in minor needs that they can supply on their own. They abuse your goodness because you don’t want to offend them and hurt their feelings. They push their demands because you don’t know how to say “no” even if you want to. You give in to their cajoling even it violated other’s rights because you don’t want trouble.

But you know what? They did it because you allow them to. The real problem is not them but it’s “You”. So fix up yourself and let them go. Stop being a Messiah.

Sulking is an Act of Immaturity

Mature people don’t sulk. There….. I said it at last. Don’t you know that when your wishes are not followed and you sulk you are just showing how immature you are? Don’t you get it? You did not own the world and the people around you are not your servants that move according to what you want. People around have wishes like yours too but are not pushy. If they get what they want then that’s good but if not they just shrug their shoulders and go on with their own way. What you can do is to emulate them. Then get out from your comfort zone and learn how to sacrifice your sacred cows for others too. Be flexible also and just be cool when what you want is not followed. In this way you have liberated yourself from negative emotions. And don’t sulk.

My Patience at Breaking Point

While Davaoeños were so busy in the annual festivity of Kadayawan sa Dabaw I on the other hand was so engross with the construction of my bamboo house. Since I was supervising, no one dared to stop the construction unlike the first day when my father-in-law tried to command us where to put up the house in order to spare the bathroom of her favorite daughter and son-in-law who secretly aired his demand to him the day we started the construction. Their bath is sitting on the property my father-in-law allocated to my wife as heirloom. Though my wife already notified her elder sisters before the construction started we are caught unaware of my father-in-law’s act. Even though I know his demand was very unreasonable and we on the other hand don’t want complications in our inter-relationship with them I and my wife consented. So we position our house just beside the bathroom of my in-laws. But when we layout the kitchen it turned out that the space was so constraint, so I and my wife again talked with my father-in-law and her sisters (the other affected sister pose no objection). Right there and then I told sister-in-laws that we should swap bathrooms (ours was erected at the back of theirs) so we can extend our kitchen in the area their bathroom is presently occupying and just leaving a small portion as bathroom for us to use. (Just imagine their original bathroom is much bigger than our kitchen-to-be. Isn’t it reasonable to bath swap?) With discontent in her voice the favorite daughter of my father-in-law finally relented. So when our carpenter pulled down their bath’s wall no one poses objection. It is understood then that we will share the use of our old bath which was left intact. But when our carpenter started building a new smaller bathroom in their now non-existent one enclosing it totally, father-in-law commanded him to tear it down again because his favorite son-in-law cannot pass through.

When I learned about this I said to myself, “Too much is too much”. I was so pissed off that on that instant I lost my respect for them. I know they knew I am already angry since they can read it on my face. I am one person who never learned how to hide my emotions. But I don’t care. If they want respect they should learn how to respect first.

Now that my dark emotion ebbed (my respect still non-existent) I can now dissect from a distance why my wife and other siblings just tolerated their sister and brother-in-law’s leeching. Why they pose no objection when their parents shower this one family with favor among others. The reason of their tolerance is simply, they don’t want disharmony in the family.

But I am not one of them. Activist as I am, I hate injustices and I expect fair play from others too – my wife’s family included. So I cannot guarantee that I can still play it cool if they will pull down another stunt that would trample down my family’s welfare again. No guarantees what my reactions would be.

They should not try me again.

Female Stude Mauled by Fellow Gang Members

Recently, a female high school student was found sprawled inside a restroom in one of the many schools located here in our District.  The said student who collapsed was rushed to a nearby hospital where she undergoes immediate medical attention. Based on the medical examination conducted, her genetalia were swollen probably by a bump of a hard object, her body black and blue, and half of her beautiful face bloated with bruises. She was said to be in a 50 – 50 condition during that time of hospital admission.  Upon investigation of the local authorities she was mauled by fellow gang members when she tried to quit from the gang.

The school administrator on the other hand faces difficulties in identifying existing gangs inside the said campus especially that gang who committed the crime. That particular gang issued a warning of its own to fellow students not to identify them otherwise they and their families will suffer retaliation.

I know gangsterism is not only confined here in the Philippines. I heard there are some places where gangsterism is much more worst than us. But like them we must not accept it just as it is.  We must do something against it. We may not eradicate them totally but somehow we can minimize its popularity and effects.

What happened to that student?  She survived the mauling but she is still nursing the trauma of the experience.