MANILA - The Commission on Audit has warned the Home Development Mutual Fund, popularly known as Pag-IBIG Fund, that 22,123 borrowers are at risk of delayed redemption and foreclosure and disposal of their properties.
In its 2017 report, government auditors noted that housing loan value amounting to P14.407 billion remained outstanding as the Contracts To Sell (CTS) are not yet converted to Real Estate Mortgages (REM).
Some 7,077 accounts are in the National Capital Region; 10,484 in San Fernando, Pampanga; 4,016 in Cebu; and 182 in La Union.
“Analysis of the CTS accounts available for conversion disclosed that a total of 22,123 accounts with loan value of P14.407 billion were not yet converted to REM, but which have already exceeded the allowable seasoning period for the developer to convert the CTS accounts to REM,” the COA said.
Government auditors said that annotations of the REM could not be done by the Register of Deeds because of the deficiencies noted.
It was also noted that in San Fernando, 10 CTS amounting to P7.968 million should be cancelled.
The HDMF however blamed developers for delays in the conversion process.
“Inquiry with management disclosed that difficulties were encountered for inactive developers in continuing the conversion process. They have no records on the status of the conversion process previously started by the developers concerned. Delay in conversion was due to the voluminous transactions processed by the division,” the COA said.
The COA reiterated that HDMF do follow-ups with the developers to expedite the conversion of the CTS to REM accounts and strictly adhere to the HDMF’s circular on conversion and impose sanctions against erring developers.
It was also recommended that long overdue CTS accounts be cancelled and consolidate the titles in favor of the HDMF.