•       When the ECQ was imposed in March, Pag-IBIG saw the need to adjust its services to help its members who were affected by the impact of COVID-19.
•       To help defray the members’ expenses during the ECQ, it offered a three-month moratorium to its member-borrowers in March.
•       Pag-IBIG Fund also approved cash loans worth P716 million to over 37,900 members in April. These were the Calamity Loan and the Multi-Purpose Loan which serve as a readily-accessible source of funds where qualified members can borrow up to 80 percent of their total savings in Pag-IBIG Fund.
•       It also granted grace period to almost 4.8 million borrowers amid quarantine in May in compliance with the Bayanihan to Heal as One Act.
•       To ease and fast-track loan applications, the agency improved its online service portal to accept applications for its cash loan program.
•       Home loans to boost the economy were offered at promo rates.

Recognizing the plight of its members in this challenging time, 2020 was a year of adjustments for the Pag-IBIG Fund.

Before the Enhanced Community Quarantine (ECQ) was imposed, Pag-IBIG reported “record-breaking” earnings, housing loan releases, and cash loan releases to its members, partners, and other stakeholders in February.

Newly-appointed Housing department Secretary Eduardo del Rosario then reported that the Fund has achieved “record-highs in our key result areas while delivering responsive services to our members.”

Pag-IBIG Fund started the year 2020 on a high note with home loan releases reaching P5.5 billion in January, rising further to P6.5 billion in February, exceeding the amount released for the same months last year by 17 percent.

With such accomplishments in the first two months of 2020, Pag-IBIG was on track to release P100 billion in home loans by the end of the year.

ECQ prompts adjustment

However, when the ECQ was imposed in March, Pag-IBIG saw the need to adjust its services to help its members who were affected by the impacts of the COVID-19.

With the rise of the COVID-19 cases and the implementation of strict quarantine measures imposed in Metro Manila and other parts of the country for national safety, Pag-IBIG said that home loan releases dipped to P3.8 billion in March and P.88 billion in April.

Despite this, Pag-IBIG Fund continued to adjust its services to help its members in need.

To help defray their expenses during the enhanced community quarantine being implemented by the government in its fight to contain the coronavirus disease, Pag-IBIG offered a three-month moratorium to its member-borrowers in March.

As part of its efforts to help members during the community quarantine, Pag-IBIG Fund also approved cash loans worth P716 million to over 37,900 members in April.

The agency's cash loans, also known as short-term loans (STL), are composed of the Calamity Loan and the Multi-Purpose Loan (MPL).

The STL programs serve as a readily-accessible and affordable source of funds where qualified members can borrow up to 80 percent of their total savings in Pag-IBIG Fund.

Amid the pandemic, Pag-IBIG acted quickly to move the application process for both its Calamity Loan and MPL online. Members, or employers acting on their behalf, were allowed to submit loan applications through email. The move was made to minimize disruption in service during the ECQ.

“Our members have come to rely on our cash loans for emergencies and this time, it's no different, that's why we moved the application process online and set up multiple email addresses to receive applications by area,” Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said. “We recognize our members’ need for assistance and we will do our best to help them,” he added.

Grace period granted

Pag-IBIG Fund also granted grace period to almost 4.8 million borrowers amid quarantine in May.

The agency has granted a grace period on loan payments of all its borrowers during the enhanced community quarantine, in compliance with the Bayanihan to Heal as One Act which provided borrowers of all lenders in the country, including the Pag-IBIG, a 30-day extension for loan payments which can be further extended until the end of the ECQ period.

With the grace period, Moti said that they allowed the deferment of loan payments amounting to over P15 billion from 713,225 housing loan borrowers and over four million cash loan borrowers.

“Pag-IBIG Fund has always put sustainability over profitability,” Moti said. “And for us, sustainability starts with taking care of our members given that the Pag-IBIG Fund is owned by its members (and we’re) always ready to help whatever the situation, and this pandemic is no exception,” he added.

Moti said that the welfare of Pag-IBIG members is of “primary importance to us, which is why we initiated in March a moratorium program, which is a separate program from the grace period prescribed under the law.”

Pag-IBIG Fund also offered promo rates on home loans to boost economy. The move to offer promo rates on their home loans of as low as 4.985 percent per annum until the end of the year was initiated by Pag-IBIG to help members acquire homes and help boost the national economy amid the pandemic.

The agency offered special low rates of 4.985 percent per annum under a one-year repricing period and 5.375 percent per annum under a three-year repricing period. These are its lowest-ever rates under its Regular Housing Loan program, and are available to members getting new home loans until the end of 2020 only.

“By offering these special rates to our members, we are spurring economic activity in the housing industry, which has a ripple effect on the national economy,” Del Rosario explained. “This is a win-win situation because our members get to take advantage of these home loan rates, while their purchase of their homes will help generate more jobs to help get our economy back on track,” he added.

Online service portal boosted

In a move to ease and fast-track loan applications, Pag-IBIG Fund has improved its online service portal to accept applications for its cash loan program. The agency also assured borrowers that its loan policies are designed to help them keep their homes, especially during the pandemic.

In September, Pag-IBIG Fund’s top officials announced the granting of a 60-day grace period on all loan payments and offering a special loan restructuring program for home loan borrowers in its efforts to provide members financial relief amid the pandemic.

Pag-IBIG Fund is also offering up to six months of payment relief, more affordable amortization, and waived penalties under its special restructuring program to help home loan borrowers cope during the pandemic.

Moti said that in the last few years, Pag-IBIG has achieved a string of “best year ever.” Since 2016, it has broken its record for home loan releases each year. In July, the agency reported that earnings of over P22.8 billion in the first half of 2020.

From January to June, Pag-IBIG Fund’s gross income reached P22.82 billion, driven mainly by earnings from its housing loans and Short-Term Loans (STL), otherwise known as cash loans, and trading gains from its investment activities. The agency’s net income, meanwhile, amounted to P14.14 billion.

“Coming from a record-breaking year in 2019, Pag-IBIG Fund’s performance in the first half of the year remains decent despite the impact of community quarantines implemented to fight the spread of COVID-19,” Del Rosario said.

Highest gross income

But as the pandemic induced economic slowdown in the first few months of 2020, Pag-IBIG found its gross and net incomes dip by seven percent and 12 percent, respectively, in the first half of this year compared to the same period last year.

“We had our best year in 2019 and that’s a tough act to follow with the challenge posed by this year,” Moti said. “We have been enjoying a string of ‘best-year ever’ and we were poised to achieve another one this year, that is until the pandemic happened,” he added.

While the pandemic caused the agency to post lower incomes from housing loans and cash loans this year, Moti remains hopeful as he pointed out that they are already seeing signs of recovery in the second quarter as quarantines were either eased or lifted. From a low P.88 billion in April, home loan releases increased to P1.2 billion in May and jumped even further to P2.9 billion in June.

“We are confident because our financial position remains stable and strong, even amid these challenging times,” Moti said. “A slowdown in business is expected as the pandemic impacted both the availment and payment of our loans, but Pag-IBIG continues to be strong,” he added.

Moti noted that while Pag-IBIG’s numbers might not be record-breaking like in the past years, he expressed optimism that this is only temporary. “For Pag-IBIG, 2020 will be a story of strength, resiliency and service to members as we tackle the challenges of the ‘better normal’,” he ended.