GSIS to suspend housing loan programs

MANILA, Philippines –  The Government Service Insurance System (GSIS) announced Friday that it would suspend all its housing loan programs in line with efforts to adopt wholesale approaches to asset sales and to wind down housing programs in favor of other government shelter agencies.

GSIS president and general manager Robert Vergara said the agency wants to avoid duplication of functions with other government agencies.

“With this new measure, we also avoid duplication with their functions,” he said.

Vergara pointed out that while it is within the mandate of the pension fund to provide housing loan programs, it is primarily a pension fund and not a housing institution.

“We will meet with Pag-IBIG soon to discuss how we can possibly use its lending structure for the housing needs of our members,” Vergara said.

He also said that members’ applications and existing housing loans filed before April 28, 2011 would continue to be processed and serviced. Policies and procedural guidelines for GSIS housing programs will remain in effect for these housing loans.

With the suspension, Vergara said the pension fund would be able to focus on other types of loans it can offer to its members and pensioners.

To date, around 85 percent of GSIS’s loan portfolio is into short to medium-term loans namely the consolidated loan, the emergency loan, the one-time cash advance, the policy loan, and the pension loan, which can be availed online.

Vegara said that the suspension of the housing loan program would not affect the pension fund’s financial position. –Iris C. Gonzales (The Philippine Star)