Yesterday, Councilor Danny Dayanghirang in his column “This is it” printed in Mindanao Times enumerated points why he filed a letter complaint to Atty. Humphrey Monteroso, Deputy Ombudsman for Mindanao against HUDCC and NHMFC for the foreclosure proceedings executed by Balikatan Housing Finance, Inc. (BHFI).

Since I’ve been following this same issue which was first raised by House Speaker Prospero Nograles may I then go over Councilor Dayanghirang’s views one by one to shed some light into it in fairness to the agencies concerned.

He said that, “The objective of the program (which he identified as Socialized Housing Program) of the government for active members was defeated when thousands of accounts were later transferred to Balikatan Housing Finance, Inc. which in turn initiated foreclosure proceedings against those who have delayed payments of their amortization.

May I point out that National Home Mortgage Finance Corporation’s (NHMFC) Unified Home Lending Program (UHLP) is not a socialized housing program but a low-cost or affordable housing program. It was not created to address the needs of poverty but it was created to be a self-sustaining, continuous housing program through repayments by its borrowers. But sad to say, high volume of delinquencies defeated the purpose of the program instead causing its termination.

Foreclosure is only the last resort to recover the delinquencies which was already long overdue.

 “…… It (foreclosure) must be carried out with understanding and consideration of the present economic status of the landowners.”

Is 10 to 15 years leeway of delinquencies not understanding and consideration enough? If it is not then what is it? And if you will visit the location of these accounts the homeowners already introduced improvements. Some occupants are already assumers which mean the original borrowers have capitalized their properties without settling their housing accounts in NHMFC.

According to my research, BHFI had introduced refinancing schemes that any homeowners can avail if they will just visit their office.

"... The interest rate chargeable to the homeowners was changed from 9% to 14%... is clear violation of the terms imposed in the original contract….”

Because what is involved are highly delinquent accounts and the program is a recovery & refinancing program why would they question the interest rate? If they have paid the original monthly amortization religiously that usually ranges from approximately One Thousand (P1,000.00) to One Thousand Five Hundred (P1,500.00) Pesos their accounts will not be transferred to BHFI and the interest rate will remain a 9% per annum.

According to the Loan Mortgage Agreement (LMA) they signed, failure to pay monthly amortization in three (3) consecutive months the total amount of the loan is due and demandable. Now who’s violating the contract?

"... confront the officers who are responsible to the transfer of accounts from Government to Private Corporation which I believe is illegal…..”

One of the agreements stipulated in the Loan Mortgage Agreement, the Originating institution where the loan originates has the right to transfer the accounts without prior notice to the borrower. Where's the illegality in that?

I think Councilor Danny Dayanghirang and the rest of the media must grab a copy of the LMA and have a thorough reading before lambasting any housing institution (government and private alike) that institute foreclosure proceedings. Though their motive is to help these delinquent homeowners (tolerance of non-payment is not helping to me) they should not be too slanted in their views. They should do some more research first to have a clear view of the different angles of the issue.