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CMP OVERVIEW AND OBJECTIVES
The Community Mortgage Program (CMP) aims to improve the living conditions of homeless and underprivileged citizens by providing them affordable financing with which they can secure tenure on the land they occupy.

The CMP is a mortgage financing program which assists legally organized associations ofresidents of blighted or depressed areas to own the lots they occupy, providing them security of tenure and eventually improve their neighborhood and homes to the extent of their affordability.

Revised Loan Entitlement Amounts applicable for both Metro Manila and highly urbanized cities, and other areas, without distinction, have been increased as follows:
   

                                                        

   PURPOSE                                    Maximum Loan Amount                  Monthly Amortization

   Lot Acquisition                            P 100,000.00                                      P 685.30
   Site Development                       P 30,000.00                                        P 205.59
   Housing Materials                       P 120,000.00                                      P 834.60
   LOAN PACKAGE                       P 250,000.00                                   P1,725.49



The determination of final loan amount shall be subject to existing CMP guidelines the CMP loan will bear 6% interest per year based on the outstanding balance and will be payable over a maximum period of 25 years in equal monthly amortizations.

DUE DILIGENCE
The processing of CMP loan applications will essentially involve due diligence verification by SHFC on the CMP loan application and the collateral. Upon acceptance of complete documentary requirements, SHFC shall strive to devote no more than one hundred twenty (120) working days to complete the due diligence process from CMP loan application to loan release.

CMP PROJECT CLASSIFICATION
CMP LOAN COLLATERAL
The land to be acquired by the Community Association (CA) shall serve as the CMP loan collateral, and will be acceptable if the following criteria are met:
1. The title to the land is free from all liens and encumbrances at the time of release of the CMP loan;
2. The land is not classified as agricultural;
3. The land is not within environmentally-constrained/ hazardous or high-risk areas as certified by the DENR and the concerned local government unit;
4. The land has a road right of way or an access road lot to a city, municipal or barangay road; and
5. The landowner should have the legal capacity to sell or transfer the subject property for loan collateral under the CMP.

BORROWERS
Tenants/beneficiaries shall form and register a CA, which entity shall borrow and initially own and mortgage the land. Individual beneficiaries’ right over the land and eventual ownership of the lot is achieved through a Lease Purchase Agreement (LPA) with the CA.

ELIGIBILITY OF CMP BORROWERS

1. Filipino citizen, of legal age (18) at the time of the loan application and shall not be more than 60 years old upon loan release;
2. Certifies under oath that he/she has not been a recipient of any CMP loan or other govt. housing programs. Does not own or co-own a real property and is not a professional squatter as defined in RA 7279;
3. Must be a structure owner, a renter or a sharer at the site.

DELINQUENCY / DEFAULT
A CA account is considered in default if it is not up to date with its loan amortization payments equivalent to three months.

PENALTIES
In case of non-payment of monthly amortizations on the due date (one month after release of the loan), the CA shall pay a penalty equivalent to delay.

INSURANCE
For the duration of the loan, there shall be a Mortgage Insurance on the lives of the principal borrowers as identified in the Master List of Members on a yearly renewable term basis. The insurance premiums shall be included in the monthly amortizations of the members.

SUBSTITUTION OF BENEFICIARIES / FORECLOSURE
The Master list of members submitted as part of the CMP loan application are deemed final and may not be subject to substitution during loan application processing period.
A member may be substituted due to the following:
1. A member is in default in the payment of his/her share in the monthly amortization of the CA loan; and
2. A member voluntarily waives his/her rights to the allocated lot/property in favor of the CA.

Renters or sharers in the project sites shall be preferred or prioritized in the substitution process.

The CA shall be responsible for the substitution of the member without prejudice to the right of SHFC to disqualify substitute members if they fail to meet the qualifications of a member or if there is proof of misrepresentation by the CA officers.

COMMUNITY MOBILIZERS (CMP-M)
Accredited CMP-Ms are tasked to assist informal settlers in organizing themselves into CAs. CMP-Ms may either be any government entity, non-government organizations (NGO) and People’s Organizations (PO) and must possess the needed skills to organize communities, document CMP project applications, and provide access to other government agencies involved in the program.

CMP-Ms shall be entitled to a service fee equivalent to two percent (2%) of the loan amount or P1,000.00, per member, whichever is higher.
Community Mortgage Program > Fast Facts
ON-SITE OFF -SITE
Members of the
Community Association
(CA) are already
living/residing in the
project site

The community has
been in existence for five
(5) years; 85% of the total
number of members
should have a residency of 5 years;

at least 85%
occupancy rate at the
time of application and
100% after two (2) years from loan release

Maximum of 200
beneficiaries
Homogenous group living
outside the project area
but has to be relocated
due to any of the
following reasons:

Beneficiaries living
in danger zones/areas;

Beneficiaries
affected by government
infrastructure project;

Beneficiaries with
threat of eviction or
actual ejectment thru a
case/court order

Maximum of 200
beneficiaries

100% appraisal
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