Pag-Ibig Fund Circular No. 242-08 Implementing Guidelines of the Pag-Ibig Home Matching Program (PHMP) for Overseas Filipino Workers

October 6, 2008

PAG-IBIG FUND CIRCULAR NO. 242-08

TO	:	All Concerned

SUBJECT	:	Implementing Guidelines of the Pag-Ibig Home Matching Program (PHMP) for Overseas Filipino Workers

Pursuant to the approval of the Pag-IBIG Fund Senior Management Committee in its meeting held last 22 September 2008, the Implementing Guidelines of the Pag-IBIG Home Matching Program (PHMP) for Overseas Filipino Workers are hereby issued:

A. OBJECTIVES

1. To promote the Pag-IBIG housing loan program to Filipinos overseas as a vehicle in generating POP members.

2. To provide information to Filipinos overseas on available housing units in the Philippines that will match their affordability level and preferences as well as facilitate acquisition thereof while working abroad.

3. To strengthen government and private sector partnership in the provision of shelter for Filipinos overseas by extending appropriate support to the private sector to promote their housing projects.

B. COVERAGE

This program shall be open to the following:

1. Land-based/sea-based Overseas Filipino Workers (OFWs)

2. Filipino immigrants and those naturalized in other countries

C. MECHANICS

1. Pag-IBIG Fund shall invite developers with existing Funding Commitment Agreement (FCA) to participate under the PHMP.

2. Participating developers shall submit basic information of all projects that will be included in the PHMP.

3. Pag-IBIG Fund and participating developers shall enter into a Memorandum of Agreement (MOA), providing for, among others:

3.1 Responsibilities of Pag-IBIG Fund

3.1.1 Pag-IBIG International Operations Group shall perform the following tasks: TcSCEa

a. Brief OFWs on the salient features of the PHMP.

b. Provide OFWs with the relevant information specific to the projects of the PHMP-registered developers that meet their preferences, based on the following parameters:

i. location

ii. type of unit

iii. affordability level

c. Maintain housing databases and monitor the status of accounts/referrals based on reports submitted by the developer

d. Organize housing fairs and participate in activities coordinated by Filipino communities abroad.

e. Conduct housing loan counseling to prospective member-borrowers and assist in the initial housing loan documentation, including the validation of the POP members' proof of income, if applicable.

f. Prescribe the volume of brochures, posters and other information materials that each participating developer may send to Pag-IBIG overseas posts.

3.1.2 Loans Origination Group shall perform the following tasks:

a. Consolidate information/updates on duly accredited housing projects under the PHMP that developers prefer to include in the program

b. Provide updates on housing projects to the Computer Operations Support and Services Group (COSSG) for uploading to the PHMP website ECcDAH

c. Furnish PIOG with approved promotional materials provided by the participating developers

d. Process and evaluate the housing loan applications of qualified POP members and issue the Notice of Approval/Letter of Guaranty within fifteen (15) working days from receipt of complete, valid and acceptable documents.

e. Facilitate the provision of corporate-wide access to the PIOG on the status of housing loan applications of POP members.

3.1.3 Computer Operations Support and Services Group shall perform the following tasks:

a. Provide the necessary information technology support, such as the hardware, software and network connection requirements.

b. Develop website for the PHMP, in coordination with the PIOG.

c. Regularly upload, maintain and update the database relative to the PHMP.

3.1.4 Public Relations and Information Services Group shall perform the following tasks:

a. Create the design and layout of the PHMP website.

b. Formulate, design and produce the information materials for PHMP. cSIHCA

3.2 Responsibilities of the Developer

The developer shall perform the following tasks:

3.2.1 Enroll in the PHMP and pay the required fees.

3.2.2 Provide information/updates on housing projects enrolled under the PHMP to the Loans Origination Group. Said information must adhere to the parameters set on the buyer's preferences listed in Item C Section 3.1.1 (b).

3.2.3 Share in the expenses of housing fairs or sponsorship of Pag-IBIG in activities coordinated by Filipino communities abroad.

3.2.4 Furnish the Loans Origination Group with the duly certified list of housing projects/units, brochures, posters, flyers, audio-visual productions, pricelists and other information materials enrolled under the PHMP. The developer shall handle the shipment of the sales materials to the POP posts and shall likewise shoulder its corresponding freight expenses.

3.2.5 Submit a monthly report on reservations/option sales and booked transactions (consummated sales through cash/spot purchase, in-house financing or mortgage financing through the Pag-IBIG/banks) to the PIOG. Reports must be submitted on or before the 10th day of the following month.

D. FEES

1. The developers shall pay an annual participation fee of Ten Thousand Pesos (P10,000.00) upon signing of the Memorandum of Agreement (MOA) and every anniversary date thereafter, which shall coincide with the date of MOA execution.

2. The Pag-IBIG Fund shall charge the developer a Home Matching Fee (HMF) equivalent to one percent (1%) of the selling price of the housing unit/s matched and sold via the program. The developer shall settle the HMF in the following manner:

2.1 Cash sales / Spot Purchase

2.1.1 Thirty percent (30%) upon reservation;

2.1.2 Seventy percent (70%) upon full payment of contract price.

2.2 In-house financing or mortgage financing through the Pag-IBIG Fund/banks

2.2.1 Thirty percent (30%) upon reservation;

2.2.2 Thirty percent (30%) upon signing of the Contract-to-Sell;

2.2.3 Forty percent (40%) upon full payment of equity or housing loan takeout, whichever comes first.

3. The PIOG shall issue the billing letter to the developer within five (5) days from receipt of the monthly status report on option sales, booked transactions/consummated sales provided by developers.

4. All fees collected under the PHMP shall be considered as income of the PIOG.

E. SANCTIONS

In the event that the developer failed to provide information on option sales and booked transactions through the PHMP, the Pag-IBIG Fund, through the PIOG, shall impose the following: IDAaCc

First Offense	—	Issue a warning letter.

Second Offense	—	Suspend the developer from participating in the
		PHMP.

Third Offense	—	Cancel the developer's participation in the PHMP
		and the blacklist the developer from participating
		in any of Pag-IBIG's Housing Loan Program.

Further, the developer shall be required to pay the corresponding HMF to the Fund over and above the cited sanctions.

F. AMENDMENTS

The Senior Management Committee may amend, modify or revise certain provisions of these guidelines, provided that the amendments, modifications, revisions thereof are in furtherance of the objectives of this program and are consistent with the mandate of Pag-IBIG Fund under its charter and existing laws.

Malati City, October 6, 2008.

(SGD.) ATTY. ROMERO F. S. QUIMBOChief Executive Officer

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement made and executed by and between:

HOME DEVELOPMENT MUTUAL FUND, a government entity duly organized and existing under and by virtue of Presidential Decree No. 1752, as amended, with principal office at the Atrium of Makati, Makati Avenue, Makati City, represented in this Act by its _________________________, ____________________________, hereinafter referred to as Pag-IBIG Fund.

- and -

___________________________________________________________, a corporation duly organized and existing under the laws of the Republic of the Philippines, with principal office located at _____________________________, represented in this Act by its __________________________________, hereinafter referred to as the DEVELOPER.

WITNESSETH:

WHEREAS, in order to strengthen government and private sector partnership in the provision of shelter for Filipinos overseas, the Pag-IBIG Fund has launched the Pag-IBIG Home Matching Program (PHMP) for Overseas Filipino Workers and invited developers with existing Funding Commitment Line to participate under the program.

WHEREAS, through the PHMP, Filipino overseas shall have access to information on available housing units in the Philippines that will match their affordability level and preferences as well as facilitate acquisition thereof while working abroad.

WHEREAS, the Pag-IBIG Fund has invited the DEVELOPER and the latter has agreed to participate in the PHMP.

NOW, THEREFORE, for and in consideration of the foregoing premises, the Parties have agreed as follows:

SECTION 1

Object of the Agreement

The object of this Agreement is to make available to land-based / sea-based Overseas Filipino Workers (OFWs), Filipino immigrants and those naturalized in other countries information on available housing units in the Philippines that will match their affordability level and preferences as well as facilitate acquisition thereof while working abroad, either through cash purchase or housing loan.

SECTION 2

Covenants of the Parties

2.1 Responsibilities of Pag-IBIG Fund

2.1.1. The Pag-IBIG International Operations Group (PIOG) shall perform the following tasks:

a. Brief overseas Filipinos on the salient features of the PHMP.

b. Provide overseas Filipinos with the relevant information specific to the projects of the DEVELOPER that meet their preferences, based on the following parameters:

i. location

ii. type of unit

iii. affordability level

c. Maintain housing databases and monitor the status of accounts/referrals based on reports submitted by the DEVELOPER.

d. Organize housing fairs and participate in activities coordinated by Filipino communities abroad. AEcTaS

e. Conduct housing loan counseling to prospective member-borrowers and assist in the initial housing loan documentation, including the validation of the POP members' proof of income, if applicable.

f. Prescribe the volume of brochures, posters and other information materials that DEVELOPER may send to Pag-IBIG overseas posts.

2.1.2. Loans Origination Group shall perform the following tasks:

a. Consolidate information/updates on duly accredited housing projects under the PHMP that DEVELOPER prefers to include in the program

b. Provide updates on housing projects to the Computer Operations Support and Services Group (COSSG) for uploading to the PHMP website

c. Furnish PIOG with approved promotional materials provided by the DEVELOPER.

e. Facilitate the provision of corporate-wide access to the PIOG on the status of housing loan applications of POP members.

2.1.3. Computer Operations Support and Services Group shall perform the following tasks:

a. Provide the necessary information technology support, such as the hardware, software and network connection requirements. SHaATC

b. Develop website for the PHMP, in coordination with the PIOG.

c. Regularly upload, maintain and update the database relative to the PHMP.

2.1.4. Public Relations and Information Services Group shall perform the following tasks:

a. Create the design and layout of the PHMP website.

b. Formulate, design and produce the information materials for PHMP.

2.2 Responsibilities of the DEVELOPER

2.2.1. The DEVELOPER shall perform the following tasks:

a. Enroll in the PHMP and pay the required fees.

b. Provide information/updates on housing projects enrolled under the PHMP to Pag-IBIG Fund's Loans Origination Group. Said information must adhere to the parameters set on the buyer's preferences listed in Sec.2 Item 2.1.1 (b) of this Agreement.

c. Share in the expenses of housing fairs or sponsorship of Pag-IBIG Fund in activities coordinated by Filipino communities abroad.

d. Furnish the Pag-IBIG Fund's Loans Origination Group with the duly certified list of housing projects/units, brochures, posters, flyers, audio-visual productions, pricelists and other information materials enrolled under the PHMP. It shall handle the shipment of the sales materials to the POP posts abroad and shall likewise shoulder its corresponding freight expenses.

e. Submit a monthly report on reservations/option sales and booked transactions (consummated sales through cash/spot purchase, in-house financing or mortgage financing through the Pag-IBIG Fund/banks) to the PIOG. Reports must be submitted on or before the 10th day of the following month.

SECTION 3

Fees

3.1. Participation Fee. The DEVELOPER shall pay an annual participation fee of Ten Thousand Pesos (P10,000.00) upon signing of this Agreement and every anniversary date thereafter, which shall coincide with the date of execution of the Memorandum of Agreement (MOA). The participation fee shall cover the enrollment of three (3) housing projects. The DEVELOPER shall be charged Two Thousand Pesos (P2,000.00) for every additional project that would be enrolled in the program.

3.2. Home Matching Fee (HMF). The Pag-IBIG Fund shall charge the DEVELOPER an HMF equivalent to one percent (1%) of the selling price of the housing unit/s matched and sold via the program. The Home Matching Fee shall also be charged for housing unit/s that is/are sold during the housing fairs sponsored by the Pag-IBIG Fund. The DEVELOPER shall settle the HMF in the following manner:

3.2.1. Cash sales / Spot Purchase

a. Thirty percent (30%) upon reservation;

b. Seventy percent (70%) upon full payment of contract price

3.2.2. In-house financing or mortgage financing through the Pag-IBIG Fund/banks

a. Thirty percent (30%) upon reservation;

b. Thirty percent (30%) upon signing of the Contract-to-Sell;

c. Forty percent (40%) upon full payment of equity or housing loan takeout, whichever comes first. DTSIEc

3.3. The Pag-IBIG Fund, through the PIOG, shall issue the billing letter to the DEVELOPER within five (5) days from receipt of the monthly status report on option sales, booked transactions/consummated sales provided by the DEVELOPER.

SECTION 4

Sanctions

In the event that the DEVELOPER shall fail to provide information on option sales and booked transactions through the PHMP, the Pag-IBIG Fund, through the PIOG, shall impose the following sanctions:

First Offense	—	Issue a warning letter.

Second Offense	—	Suspend the developer from participating in the PHMP.

Third Offense	—	Cancel the DEVELOPER's participation in the PHMP
		and the blacklist the DEVELOPER from participating in
		any of Pag-IBIG Fund's Housing Loan Program.

Further, the DEVELOPER shall be required to pay the corresponding HMF to the Pag-IBIG Fund over and above the cited sanctions.

Likewise, the DEVELOPER's participation in the PHMP shall be immediately terminated upon the occurrence of the following:

1. The DEVELOPER has been blacklisted in any of the Pag-IBIG Fund's housing programs.

2. The DEVELOPER has been issued a Cease and Desist Order by the Housing and Land Use Regulatory Board (HLURB). IETCAS

SECTION 5

Miscellaneous

5.1 Separability

In the event that any provision of this Agreement is held invalid or contrary to law, the validity of the other terms and conditions hereof shall not be affected thereby.

5.2 Written Amendments

The Parties hereto may, at anytime, by mutual agreement, execute a supplement or amendment for the purpose of adding provisions to or changing or eliminating provisions of this Memorandum of Agreement.

IN WITNESS WHEREOF, the parties have hereunto set their hands on this ____ day of __________, in _______________________________.

HOME DEVELOPMENT MUTUAL	DEVELOPER
FUND

By:	By:

_____________________________	_____________________________

_____(ID)______No.___________	______________No.____________

Date of Issue __________________	Date of Issue __________________

Expiry Date ___________________	Expiry Date ___________________

SIGNED IN THE PRESENCE OF:

____________________________	_____________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

BEFORE ME, A Notary Public for and in the _________________, Province of __________________________ this _____ day of ______, 20____ personally appeared the above-named persons, who have satisfactorily proven to me their identity through their identifying documents written below their names and signatures, that they are the same persons who executed and voluntarily signed the foregoing Memorandum of Agreement, which they acknowledged before me as their free and voluntary act and deed. That they are acting as the representatives of the Home Development Mutual Fund and the _____________________(Developer)___________________, respectively, and that they have the authority to sign in such capacity by virtue of a Board Resolution/ Secretary's Certificate.

The foregoing instrument which relates to a Memorandum of Agreement consisting of six (6) pages including the page on which this acknowledgment is written, has been signed on the left margin of each and every page by the parties and the witnesses. AIHaCc

WITNESS MY HAND AND NOTARIAL SEAL.

Doc. No. _______;