Vice President Jejomar C. Binay announced the approval of a penalty condonation program for borrowers of the National Home Mortgage Finance Corporation (NHMFC).

            Binay, who sits as Chairman of the NHMFC Board of Directors, said the program will be effective from October 1, 2012 to December 31, 2012. He also urged borrowers to avail of this final opportunity to update or restructure their accounts to avoid the filing of foreclosure proceedings against them.  

            “The penalty condonation program will resolve a significant number of NHMFC’s delinquent housing loan accounts,” he said.

            “This gives our delinquent borrowers a final chance, at reasonable and cost-friendlier terms, to secure their dreams of fully owning their homes,” Binay added. 

            Binay said that the implementation of the condonation program is in line with the government’s policy of providing affordable and decent housing to the underprivileged. 

            The penalty condonation program is in accordance with Section 4 of Republic Act No. 9507, otherwise known as the Socialized and Low-Cost Housing Loan Restructuring Act of 2008 which expressly confers authority upon the NHMFC Board of Directors, among others, to continue the loan restructuring and condonation program under this law.

            As of date, various requests from housing loan borrowers for a condonation program are increasing.

            In the previous implementation of the penalty condonation in March 2009 to September 2010, more than 10,000 housing loan borrowers benefitted from the program.