DON’T ABUSE CMP—VP NOLI
April 5, 2008

Vice President and Housing and Urban Development Coordinating Council (HUDCC) chairman Noli ‘Kabayan’ De Castro has called on beneficiaries of the community mortgage program (CMP) to be responsible loan borrowers.

Speaking during the awarding of certificates of lot awards in a CMP project in Baranggay Tagaran, Cauayan City in Isabela recently (March 31), De Castro said the success of CMP mostly hinges on the prompt payment of loans extended by the government to the beneficiaries.

He reminded beneficiaries that funds used in CMP implementation are not dole-outs but are rather loans with very affordable interests given to poor homeless families who do not have access to formal lending institutions.

“Let me remind you that the CMP is a loan program. This is implemented by the government to provide low-cost housing program for the Filipino people specially the poor.”

“You have to understand that your payment is used by the government to be able to make more programs for our kababayans who are in need.”

De Castro made the reminder after finding out that many homeowner associations under the CMP in Cauayan are not paying on time.

Except for the RC Banez CMP HOA Inc. and the Villegas Village HOA, De Castro reported that the remaining CMP projects are either delayed in payments or have stopped paying amortizations to register a low collection efficiency rate (CER) of only 27.3 percent.

“This means it is either you are not paying on time or you have not paid for a long time, or you do not have any interest paying at all. I don’t think that’s a good practice.”

Thus, De Castro said he is eyeing for stricter measures to protect CMP from abuses.

“Under my governance, stricter measures shall be observed to protect CMP from abuses considering the less privileged who are waiting in line to avail this program.”

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