SSS collects P849 M from housing loans in H1

MANILA, Philippines — State-run Social Security System (SSS) has generated P894.04 million in revenue from housing loans settlements in the first half of 2019.

In a statement, SSS president and chief executive officer Aurora Ignacio said collection from housing loans – including amortization and interest payments – in the first six months of the year rose 27.56 percent from the P665.6 million recorded during the same period in 2018.

Ignacio said the increase in collection was the result of the aggressive collection and foreclosure efforts of the pension fund as well as the development of a new billing system for more convenient collection.

“In line with the intensified collection efforts of the SSS’ Housing and Acquired Assets Management Department, 3,669 billing letters were sent to housing loan mortgagors or borrowers from January to July 2019. This is to remind them of their housing loan obligations, and prevent incurring penalties and foreclosure of their property,” Ignacio said, noting that 1,379 of these mortgagors already updated their payments.

She said this collection initiative allows validation of payment records and reconciliation of accounts of member-borrowers.

“We are pleased with the increase in collection from housing loans. With this additional fund, we can help more members who may be having difficulties in acquiring properties or improving their houses. Members may use the housing loan for low-cost housing or house repair and improvement. They may also use this loan to purchase a lot and construct a new house.  Likewise, they can use the loan to purchase an existing residential unit or construct a new house on their owned lot,” Ignacio said.

However, while collection increased, the SSS chief said the amount of housing loan releases during the first half of the year decreased 49.26 percent to P2.07 million from P4.08 million in the same period in 2018.

Under the SSS housing loan program, members may avail of the direct housing loan for workers’ organization members, direct housing loan for overseas Filipino workers, house repair or improvement loan, and assumption of mortgage.

“The housing loan may be paid in multiples of five years to a maximum period of 30 years at an annual rate ranging from eight percent for properties worth up to P450,000 to 11 percent per annum for properties worth P1.5 million to P2 million. SSS also sells foreclosed properties at affordable rates and convenient terms,” Ignacio said.

To qualify for the loan, a member-borrower must be a member of a registered workers’ organization or be an OFW with at least 36 monthly contribution and 24 continuous contributions in the period prior to application.

A member must be 60 years old and below at the time of application, with no previous housing loan from the SSS.

“Many members are having difficulties in paying steep house rental fees or are living in houses in poor condition. Thus, we encourage our members to take advantage of the housing loan program, where they may borrow up to P2 million to buy their own home or improve the condition of their current house,” Ignacio said.