Pag-IBIG Fund

Corporate Headquarters
Petron Mega Plaza
358 Sen. Gil Puyat Avenue
Makati City

Circular No. 441

TO: ALL CONCERNED

SUBJECT: GUIDELINES ON THE REPURCHASE OF Pag-IBIG FUND REAL

AND OTHER PROPERTIES ACQUIRED

Pursuant to the approval of the Pag-IBIG Fund Board of Trustees in its meeting last
10 November 2020, the Guidelines on the Repurchase of Pag-IBIG Fund Real and
Other Properties Acquired Program is hereby issued:

I. OBJECTIVES

The Repurchase of Pag-IBIG Fund Real and Other Properties Acquired (ROPA)
Program aims to:

1. Hasten disposal of Pag-IBIG Fund acquired assets by offering newly cancelled

Sales Contract Receivable accounts for sale to eligible originating developers;

2. Ensure the full recovery on non-performing accounts through the sale of Pag-IBIG
Fund acquired assets based on the book value of the accounts; and

3. Save the expenses that the Fund may incur in the maintenance, marketing and
management of the Pag-IBIG Fund ROPA.

II. COVERAGE

This program shall cover the purchase of Pag-IBIG Fund ROPA that are located in the
subdivision or condominium housing projects of eligible originating developers.

III. ELIGIBILITY REQUIREMENTS

To qualify for the Repurchase of Pag-IBIG Fund ROPA, the originating developers
must meet the following eligibility requirements:

1. Must have transacted with Pag-IBIG Fund for at least five (5) years. However,
developers who have already transacted with the Fund for at least three (3) years
may likewise be qualified under the said program, subject to the approval of the
Cluster Credit Committee;

2. Must be in good standing, wherein the developer has maintained its accreditation
with Pag-IBIG Fund;

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 3. Must meet the following evaluation parameters:

3.1. Quality of Mortgage Documents Ratio of at least 90%;

3.2. Quality of Units Ratio of at least 90%;
3.3. Conversion Performance of at least 90%;
3.4. Performing Accounts Ratio of at least 90%;
3.5. No accounts overdue for buyback.

4. Must have paid the Expanded/Creditable Withholding Tax for the covered
accounts.

IV. MECHANICS OF THE PROGRAM

1. Qualified developers shall enter into a Memorandum of Agreement with the Fund
in relation to the repurchase of ROPA accounts.

2. Upon the lapse of the third (3rd) cycle of remediation activities, Pag-IBIG Fund shall
inform eligible developers of the Pag-IBIG Fund ROPA located in their housing
projects that are available for repurchase. Said acquired assets shall be sold on
an "as is, where is" basis.

3. Developers shall submit an Intent to Purchase to Pag-IBIG Fund, with the list of
acquired assets they intend to repurchase within thirty (30) calendar days from the
receipt of the said notice. Any unsold account shall be endorsed for disposal in
accordance with the prevailing guidelines on the sale of Pag-IBIG Fund ROPA.

4. A Repurchase Agreement shall be executed between the developer and the Fund
for the sale of the acquired assets.

5. The repurchase price of the subject acquired assets shall be based on the book
value, which is equivalent to the outstanding principal balance of the accounts plus
three (3) months accrued interests.

5.1. The developer shall pay the repurchase price through cash within ninety (90)
calendar days from the execution of the Repurchase Agreement. However,
the developer may request to pay the said amount through installment for a
maximum period of one (1) year, subject to the approval of the Cluster
Disposal Committee.

5.2. Developers shall pay the Repurchase Price through Post Dated Checks,
Cash/Manager's Check, or application of takeout proceeds.

6. The developer shall pay a downpayment of at least five percent (5%) of the total
repurchase price within thirty (30) calendar days from the signing of the
Repurchase Agreement.

7. Any remaining retention fee for the covered acquired assets shall be applied as
down payment or part thereof.

8. All taxes and transfer costs related to the purchase of Pag-IBIG Fund acquired
assets shall be on the account of the developer.

V. RELEASE OF TITLE UPON PAYMENT OF THE REPURCHASE PRICE

All titles to properties subject of the Repurchase Agreement shall be released upon
full payment of the repurchase price. Partial release of titles shall be allowed for
approved installment payment plan.

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VI. DEFAULT

1. The developer shall be considered in default due to any of the following grounds:

1.1 Failure to pay the Total Repurchase Price within the prescribed period, or

1.2 Violation of the terms and conditions in the Memorandum of Agreement.

2. In case of default, the remaining repurchase price, including accrued interests,

penalties, fees and other charges shall become due and demandable from the
developer. Pag-IBIG Fund shall offset the said amount against subsequent takeout
proceeds or from any amount due the developer, if any.

3. The developer's participation in this program shall be suspended until the balance
of the repurchase price has been collected in full. Thereafter, suspension from the
program may be lifted; provided, the developer meets the criteria provided herein.

VII. MECHANISM ON RESOLUTION OF ISSUES

Any issue in the interpretation and implementation of this Guidelines shall, as much
as possible, be resolved by the concerned officer based on the procedures and
business rules for this Guidelines. Matters that are not thereby satisfactorily
resolved shall be escalated to the next higher approving authority.

VIII. AMENDMENTS

Amendments to this Guidelines shall be approved by the Senior Management

Committee pursuant to the authority bestowed on it by the Fund's Board of Trustees
to formulate and issue guidelines and procedures in furtherance of the objectives
of this program consistent with the mandate of the Fund under its Charter and
existing laws.

This Guidelines shall modify the order of disposal under Pag-IBIG Fund Circular
No. 428, or the Omnibus Guidelines on the Sale of Pag-IBIG Fund Real and Other
Properties Acquired.

IX. EFFECTIVITY

This Circular takes effect after fifteen (15) calendar days following the completion
of its publication in the Official Gazette or in a news per of general circulation .

. MOTI

Makati City,

December 21 ,2020