EXCLUSION OF UPGRADED MEMBERSHIP SAVINGS (MS) IN THE HOUSING LOAN MONTHLY AMORTIZATION

Pursuant  to the approval  of the Pag-lBIG  Fund Board of Trustees  on its 326th Board  meeting  held  last  6  December  2017,  the  following  policies  are  hereby issued:

1.     For  new  Housing  Loan  (HL)  takeout,  the  amortization  payments  shall  no longer  include  the  upgraded  membership  savings  beginning  03  January
2018. For existing  HL, monthly  amortization  starting  01 January  2018 and
onwards shall be recomputed to exclude upgraded membership savings.

2.    Upon effectivity of these guidelines:

a)   OFWs  and  Self-employed   HL  borrowers   shall  pay  separately   their housing loan amortization and membership savings. Payment of membership savings shall be in accordance with applicable membership and remittance guidelines.

b)   Locally employed HL borrowers shall pay their housing loan amortization directly to Pag-lBIG Fund and/or other payment channels acceptable to the  Fund.   The  payment   of  their  membership   savings   shall  be  in accordance with applicable membership and remittance guidelines.

3.     In  case  the  housing  loan  borrower  shall  still  pay  the  original  monthly amortization, the rules on excess payments provided in the memorandum entitled “Treatment  of Payments  for Housing  Loan Amortization”  issued on
30 August 2017 shall apply.

This Circular takes effect on 01 January 2018.