(NAR) VOL. 19 NO. 1 / JANUARY - MARCH 2008
a) Loans extended to individual households for purposes of financing the acquisition, construction, and/or improvement of housing units and acquisition of any associated land that is or will be occupied by the borrower, regardless of amount;For this purpose, "real estate loans" shall refer to loans granted (a) to individual households for the acquisition, construction and/or improvement of housing units and acquisition of any associated land that is or will be occupied by the borrower, including loans granted to bank officers and employees for the same purpose which are covered by bank's fringe benefit plan and which plan was approved by the Monetary Board and (b) to land developers/construction companies and other borrowers for the acquisition and development of land and/or construction of buildings and structures, including housing units for sale/lease and/or for use in retail/wholesale, manufacturing or other income-generating purposes, including loans for the land development and construction of residential properties.
b) Loans extended to land developers/construction companies for the purpose of development and/or construction of socialized and low-cost residential properties as defined under existing guidelines of the Housing and Urban Development Coordinating Council (HUDCC) for the implementation of government housing programs, which are intended for sale to individual households;
c) Loans to the extent guaranteed by the Home Guaranty Corporation (HGC); and
d) Loans to the extent collateralize by non-risk assets under existing regulations shall not exceed twenty percent (20%) of the total loan portfolio; net of interbank loans.
The revised template of Report on Real Estate Exposure, which shall form part of the Financial Reporting Package issued under Circular No. 512 dated 03 February 2006, as amended, for UBs/KBs and TBs is attached as Annex "A"*.
Housing Package Loan Ceiling Low-cost Level 1-A (Socialized) P300, 000 and below Level 1-B Above P300, 000 to P500,000 Level 2 Above P500,000 to P1,250.000 Level 3 Above P1,250,000 to P3,000,000