The Government Service Insurance System announced today that effective April 28 this year, it is suspending all of its housing loan programs in line with the thrust to adopt wholesale approaches to asset sales and to wind down housing programs in favor of working with key shelter agencies (KSAs).
“We want to synchronize our efforts in the implementation of the government’s housing loan program through closer partnership with the KSAs, whose core functions focus on housing,” said Robert G. Vergara, President and General Manager.
“With this new measure, we also avoid duplication with their functions.”
Vergara pointed out that while it is within the mandate of the pension fund to enter into housing loan programs, “GSIS is really not a housing institution… it is first and foremost a pension fund.”
“We will meet with Pag-IBIG soon to discuss how we can possibly use its lending structure for the housing needs of our members,” the pension fund chief added.
The GSIS clarified that applications and existing housing loans before April 28 will continue to be processed and serviced. Policies and procedural guidelines for GSIS housing programs will remain in effect for these housing loans.
The disposition of acquired assets will continue but on a cash basis only.
Meanwhile, Vergara said the suspension of its housing loan programs will enable the pension fund 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 via the G-W@PS kiosk using a member or a pensioner’s eCard.
Vergara assured its more than 1.7 million members and pensioners that the System is in a healthy financial position and “withdrawal from direct home lending will not adversely affect this standing.”