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Loan / Mortgage Fraud
Mr. Juanito V. Eje OIC – Senior Vice President
Business Development Sector
HOME MUTUAL
DEVELOPMENT FUND
ISO 9001:2008
Certified
Overview Key Housing Agencies in the Philippines
ISO 9001:2008
Certified
Overview Pag-IBIG Fund: The Filipino Workers’ Fund
SAVINGS Generation
HOUSING Finance
Fund Sources Fund Usage
• Members’ Savings
• Short-Term Loan
Amortizations
• Housing Loan Amortizations
• Capital Market Borrowings
• Income from Other
Investments
Provident
Benefits
Housing
Finance
Liquidity
Reserve
Funds
• Return of Savings
• Short-Term Loans
• End-User Housing
• Institutional Loans
• Investment Portfolio
Private
Developer Pag-IBIG
Member
End User
ISO 9001:2008
Certified
a. Regular End-User Home Financing Program
b. Affordable Housing Loan Program
1
2
Overview
Enhanced Housing Loan Program
End User Program
Institutional Loan Program
a. Direct Developmental Loan
b. House Construction Financing Line
c. Group Housing Loan
ISO 9001:2008
Certified
Overview
Housing Loan Availment
(End-User / Retail Loan)
ISO 9001:2008
Certified
Year
Taken-out
No. of
Accounts Amount*
2011 46,296 P31.532 Billion
2012 46,898 P31.821 Billion
2013 47,471 P34.035 Billion
* Actual Disbursement
ISO 9001:2008
Certified
1. WHAT TO LOOK FOR IN CHOOSING
THE RIGHT DEVELOPER
Under HDMF Circular No. 257, 259 and 329
(Developer’s Accreditation for Funding Allocation)
I. Compliance to Government Agency’s Requirements
Permits & Licenses from Government Regulatory Agencies
a. Securities & Exchange Commission (SEC)
b. Department of Trade & Industry (DTI)
c. Business Permits issued by Local Government Units (LGU)
d. Certification of No Cease & Desist Order from Housing & Land
Use Regulatory Board (HLURB)
Audited Financial Statement (FS) stamped received by
BIR & SEC
ISO 9001:2008
Certified
1. WHAT TO LOOK FOR IN CHOOSING
THE RIGHT DEVELOPER
II. Compliance to Subdivision & Condominium
Design Standard
Batas Pambansa 220 (BP 220)
Rules & Standards for Economic & Socialized Housing
Projects
Presidential Decree (PD 957)
The Subdivision & Condominium Buyer’s Protective Decree
Local Government Units (LGU) Rules & Regulations
ISO 9001:2008
Certified
1. WHAT TO LOOK FOR IN CHOOSING
THE RIGHT DEVELOPER
III. Compliance to Pag-IBIG Standard Performance Rating*
Criteria Benchmark
Rating
1. Performance Account Ratio (PAR) 90%
2. Buyback for Breach of Warranty 90%
3. Title Conversion Performance 90%
4. Compliance to Documentation
Requirements 95%
5. Compliance to Unit's Specifications 90%
* Applies to Existing Developers
ISO 9001:2008
Certified
1. WHAT TO LOOK FOR IN CHOOSING
THE RIGHT DEVELOPER
Developers' Funding
Allocation
Performance Rating Criteria Funding
Allocation
Additional
Allocation EPEB Facility
within 500M limit over 500M limit
PAR 90% 90% 95% 90%
Buyback 90% 100% 100% 100%
Conversion 90% 90% 95% 90%
QMD 95% 95% 95% 95%
QUR 90% 90% 95% 90%
Institutional Loan
Performance Current Current Current Current
ISO 9001:2008
Certified
2. PREVENTING PRESENTATION OF FAKE
TITLES AS COLLATERAL
I. Review of Titles (TCT):
a. Transfer Certificate of Title No.
b. Technical Description
c. Name of Owner
d. Mortgage Annotation, liens and encumbrances,
if any
II. Verification of the Registry of Deeds’ copy of the
TCT against Owner’s Duplicate Copy
ISO 9001:2008
Certified
2. PREVENTING PRESENTATION OF FAKE
TITLES AS COLLATERAL
III. Title Traceback, if necessary
IV. Conduct Site Inspection Crosschecking of Technical Description against the
property
ISO 9001:2008
Certified
3. DETECTING FORGED OR ALTERED
DOCUMENTS TO DETER LOAN FRAUD
A. Retail / Individual Housing Loan
I. Validation of Loan Documents
a. Cross checking of information on loan documents
(i.e. housing loan application, marital consent, certificate
of employment, income tax return, proof of billing address,
etc.)
b. Cross checking of signatories
(i.e. housing loan application, certifications, identification
cards, certificate of employment, etc.)
ISO 9001:2008
Certified
3. DETECTING FORGED OR ALTERED
DOCUMENTS TO DETER LOAN FRAUD
A. Retail / Individual Housing Loan
II. Validation thru the conduct of Credit Investigation (CI)
(i.e. visit to employer & phone interview)
B. Developers Assisted Loan
1. Unusually high delivery of housing loan applications
2. Almost Perfect Performing Accounts Ratio (PAR)
ISO 9001:2008
Certified
3. DETECTING FORGED OR ALTERED
DOCUMENTS TO DETER LOAN FRAUD
B. Developers Assisted Loan
3. The Developer has simultaneous projects which is a cause to
look at the financial capability of the Developer
4. Introduction of New Members making lump sum payments
to meet the required monthly contributions for housing loan
5. Mismatched documents
The documents in some loan applications do not belong to
the batch submitted, which indicates there are more loan
applications pending with the Developer besides the
already high volume of delivery
ISO 9001:2008
Certified
4. THE RED FLAGS THAT AGENCY LOOK FOR
INVESTIGATING ERRING BORROWERS
A. Pre-Approval of Loan
1. Refusal to provide complete set of Loan Documents
(i.e. marital consent, authority to conduct CI, health
statement form & disclosure statement, etc.)
B. Post-Approval of Loan
1. Non-payment of monthly amortization for the first three (3)
months after take-out
ISO 9001:2008
Certified
4. THE RED FLAGS THAT AGENCY LOOK FOR
INVESTIGATING ERRING BORROWERS
B. Post-Approval of Loan
2. No reply from the housing loan borrower despite notice
3. Failure to abide by the agreement/s
(payment plan & restructuring agreement)
4. Non-occupancy of the housing units
White Collar Fraud Conference
Mr. Juanito V. Eje OIC – Senior Vice President, Business Development Sector
ISO 9001:2008
Certified
Year # of
Accredited Window
Approved
Amount Utilization
2013 106 2 9,149 7,178
36 1 13,372 8,391
Total 142 22,521 15,569
As of April
2014 87 2 6,624 2,329
36 1 9,782 2,646
Total 123 16,406 4,975
