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Pag-IBIG FundCorporate HeadquartersPetron MegaPlaza

358 Sen. Gil Puyat Ave.,Makati City

CIRCULAR NO.320

TO: ALL CONCERNED

SUBJECT: ADDITIONAL POLICIES TO Pag-IBIG CIRCULAR NO. 313

Pursuant to the authority given to the Senior Management Committee to amend, modifyor revise the provisions of Pag-IBIG Circular No. 300, the additional policies onPag-IBIG Circular No. 313 on the housing loan restructuring of delinquentbeneficiaries of Group Land Acquisition and Development (GLAD) accounts arehereby issued:

1. A delinquent beneficiary of the Group Land Acquisition and Development(GLAD) Program shall be allowed to avail of the Housing Loan Restructuringand Penalty Condonation Program under Circular No. 300; provided, saidbeneficiary shall fully pay his share in the GLAD account or convert the sameto individual housing loan under the prevailing end-user home financingprogram.

2. To allow said delinquent beneficiaries to avail of the benefits under Pag-IBIGCircular No. 300, the following requirements must be satisfied:

a. The beneficiary has at least three (3) months of unpaid amortizations as ofdate of application.

b. The community/homeowners association is active and duly recognized bythe Securities and Exchange Commission (SEC), the Housing and LandUse Regulatory Board (HLURB) or the Cooperative DevelopmentAuthority (CDA);

c. The Transfer Certificates of Title (TCTs) of the GLAD project have beenunitized;

d. The corresponding individual ledgers of the beneficiaries are available,and their individual loan balances can be established; and

e. The updated real estate property tax receipt must be presented andsubmitted at point of application.

3. The community/homeowners aSisociation shall submit a Notarized Secretary'sCertificate, which provides:

a. That the outstanding loan obligation of the community/homeownersassociation shall be converted to individual housing loans;

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b. That the community/homeowners association is authorized to execute aThird Party Mortgage in favor of Pag-IBIG Fund for every loan of theindividual member that will be taken out under the End-User HomeFinancing Program.

However, a direct Real Estate Mortgage (REM) may also beexecuted between the beneficiary and Pag-IBIG Fund upon theissuance of the Deed of Absolute Sale (DOAS) by thecommunity/homeowners association in case the beneficiary isfinancially capable to undertake the conversion to individual housingloan and the transfer of TCT in his name; and

c. That Pag-IBIG Fund is authorized through a Special Power ofAttorney to execute the Deed of Absolute Sale in behalf of thecommunity/homeowners association in favor of the beneficiary uponfull payment of his loan obligation with the Fund.

4. A downpayment of at least ten percent (10%) of the total arrearages of theindividual beneficiary shall be required for the restructuring of hiscorresponding share in the GLAD account.

5. For the conversion of the GLAD share to individual Pag-IBIG housing loan,the following terms and conditions shall apply:

a. The borrower's housing loan shall bear an interest rate of nine percent(9%) per annum;

b. The loan shall be secured by the property mortgaged with Pag-IBIG Fundcovering the housing loan of the beneficiary;

c. The Loan-to-Appraisal Value Ratio shall be one hundred percent (100%);and

d. Only the following documents shall be required:

• Duly Accomplished Housing Loan Application Form;

• Valid Identification (lD) Card of Principal Borrower and Spouse, Co-Borrower and Spouse, or Attorney-in-Fact, if applicable;

• Statement of Account or Outstanding Loan Balance;

• Photocopy of Tax Declaration and Updated Real Estate Tax Receipt;

• Loan Documents

Loan Agreement

Notarized Promissory Note

Third Party Real Estate Mortgage / Real Estate Mortgage

Disclosure Statement on the Loan Transaction

6. All expenses that will be incurred in the registration of the mortgage and/ortransfer of title shall be shouldered by the borrower.

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7. The beneficiary may settle his corresponding obligation in the GLAD loanthrough any of the following modes:

a. Full Payment

Should the individual beneficiary fully pays his corresponding share in theGLAD loan, the community/homeowners association shall execute a Deedof Absolute Sale in favor of the fully paid member.

b. Conversion to Pag-IBIG Housing Loans

If the beneficiary opts to convert his proportionate share in the GLADobligation to Pag-IBIG housing loan, the community/homeownersassociation shall execute an accommodation mortgage or Third-PartyMortgage covering the property subject of the housing loan in favor ofPag-IBIG Fund.

In case the beneficiary is financially capable to immediatelyundertake the conversion to individual housing loan and to transferof TCT in his name, a direct Real Estate Mortgage (REM) may beexecuted between the beneficiary and Pag-IBIG Fund upon theissuance of the Deed of Absolute Sale (DOAS) by thecommunity/homeowners association.

8. Upon full settlement of the beneficiary of his corresponding share in theGLAD loan either through full payment or conversion to individual housingloans, Pag-IBIG Fund shall execute a Partial Release of Mortgage.

9. All applications for loan restructuring and penalty condonation program mustbe filed not later than 30 June 2012. The processing of applications shall beuntil 31 December 2012.

For GLAD projects where the mother title is not yet unitized, the subjectdelinquent beneficiaries may file their applications until 30 June 2012.However, the mother title must be unitized and their corresponding individualloan balances must be converted to end-user home financing program until31 December 2012. Otherwise, the property covering the GLAD loan of saiddelinquent beneficiaries shall be endorsed to Foreclosure Department forNCR operations or to the Loans and Contribution Management and RecoveryDivision (LCMRD) for Regional Operations.

All other terms and conditions of Pag-IBIG Circular No. 313 that are not inconsistentwith the above provisions shall continue to be in full force and effect.

Please be guided accordingly.

~~c4.ATTY. DARLENE MARIE B. BERBERABE

Chief Executive Officer

Makati City,October l5 , 2012

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