GSIS readies condonation program for members’ unpaid housing loans

MANILA, Philippines — State-run Government Service Insurance System (GSIS) is set to implement a loan condonation program for its member-borrowers with unpaid housing loans, a top official said.

In a statement, GSIS president and general manager Jesus Clint Aranas said starting October, the state fund would offer a 100 percent waiver on unpaid penalties and surcharges to housing borrowers with past due accounts and are willing to settle their housing loans.

The deadline for application for interested members is on Dec. 31, 2018.

“Majority of our existing borrowers stand to benefit from this program as almost 55 percent of our remaining 29,000 housing accounts  are for cancellation,  foreclosure or  have incurred several months of arrears,” Aranas said.

“The program will lighten the burden of our borrowers as it saves them from the heavy load of having to pay the accumulated penalties and surcharges that have been imposed from unpaid amortizations. More importantly, it will give them the opportunity to save their homes,” he added.

According to Aranas, the program is open to both active and inactive GSIS members, as well as non-members, with deeds of conditional sale or real estate loan accounts that are in arrears or default.

Only accounts that have not yet been cancelled or foreclosed are eligible for condonation, he said.

However, accounts that have been cancelled but not yet uploaded as investment property, and those foreclosed but with titles not yet consolidated in the name of the GSIS, may still avail of the condonation program, Aranas added.

Buyers of rights and legal heirs of deceased borrowers may also apply for penalty condonation.

“We would like to remind all interested applicants to avail of the program before the set deadline to prevent the troubles caused by last-minute filing and avoid further penalty charges of at least one per cent per month,” Aranas said.

Applicants who will pay their overdue accounts in full can request a condonation statement of account from the nearest GSIS office.

The GSIS is a social insurance institution that provides insurance and loan products to government workers.

Last year, the GSIS reported a net income of P94.7 billion, 69 percent higher than the previous year.  Its total assets also rose nine percent to P1.1 trillion.