Refer to: Ms. Dale Zapata
VP Noli vows
strong housing sector will deliver more in 2006
Record-breaking performances in housing finance and shelter security provision, plus a high
level of confidence from banks
and private builders made 2005 a
banner year for the housing sector, a development which government vows to continue this
This was the
substance of Vice President Noli
“Kabayan” De Castro’s report before a gathering of real estate professionals on Thursday for
the 21st Oath Taking Ceremony
of the Realty Service Council of
the Philippines (RESCOP).
said that despite economic and political difficulties last year, exceptional
performances in key areas
proved the housing sector to be stronger and more responsive to the country’s
one of the biggest shelter security projects for informal settlers with the
relocation of 19,383 families
that used to live along the North Rail right-of-way from Kalookan to Malolos,
Bulacan. This was accomplished
in only ten months, and the families are now living in the in-town, in-city
relocation sites known as the
Northville Communities,” he said.
that the Northville communities are continuously being improved with the
addition of necessary
facilities and services through the help of the government and other stakeholders.
government also established a record in shelter finance for both the formal and informal
Mortgage Program (CMP) lent a total of P720 million to various urban poor
“the highest loan assistance granted in the 17-year history of the CMP, which
benefited 14,000 families.”
formal sector, the Pag-IBIG Fund released a total of P14.39 billion in end-user
housing loans, the highest
such disbursement in 25 years, even as the Fund posted a record net income of P7.4
The Vice President also stated that the Home Guaranty Corporation (HGC) has been constantly
increasing its guaranty
enrollments, averaging P17 billion annually in the last five years from less than P7
billion before 2000.
“This is an
indication that HGC has regained the confidence of the banks,” he said.
HGC has also lowered its default rate to only 0.08% from over 10% before 2001, and reduced
unpaid calls to only P5.7
billion from P16 billion before 2001.
Last year, the National Home Mortgage Finance Corporation (NHMFC) also completed the
first ever sale of
non-performing loans by a government corporation.
“Out of this sale, NHMFC remitted P3.3 billion to the Social Security System (SSS) and P460
million the Pag-IBIG Fund,” de
Efforts to cut red tape in the housing sector resulted in a marked increase in the number of
“From the 2001 to 2005, the number of registered residential and condominium units grew by
an average of 13% per year.”
This year, De Castro vowed that, with the support of all stakeholders, the housing sector will
continue to deliver results in
four main areas: shelter security, housing finance, support for the housing
industry and organizational
Major developments to be expected include the second phase of North Rail clearing operations
up to Pampanga, the start of
clearing and relocation of
47,985 informal settlers on the South Rail line from Kalookan-South to Calamba; the flotation
of P12 billion zero coupon
bonds, wholesale asset disposition by the HGC, securitizing of
low-delinquency and current
accounts by the NHMFC, and a P22.082 billion funding allocation for housing by the
Office of the Vice President (OVP)
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