Probe on Legacy's Delos Angeles' Link on Nat'l Home Mortgage Anomaly Urged

His knack for anomalous contracts and transactions may put controversial Legacy Group founder and owner Celso delos Angeles on the grill for a longer time, for putting around 52,000 families on the brink of losing their homes.

Gabriela Party-list Rep. Luz Ilagan is pushing the House of Representatives to investigate delos Angeles' involvement in the sell-out of the non-performing loans (NPLs) of the National Home Mortgage Finance Corporation (NHMFC) – or P13.45 billion worth of 52,000 low-cost housing units nationwide – to Balikatan Housing Finance Inc. in 2004. 

The tax-free transfer triggered the possible homelessness of some 25,000 families all over the country whose houses Balikatan is threatening to foreclose unless they pay 25% of their loans' total cost or their arrearages' full amount within three months.

Owners of low-cost, sub-standard housing are mostly low-income government employees.

Balikatan also increased the lending rate from 9% to 14%, and reappraised the home owners' oustanding loans to as much as 500% of the original amount when it took over the home mortgage.

Ilagan said that delos Angeles, being the president of the NHMFC during the time of the sell-out, is accountable for allowing the such prejudicial sell-out of the NPLs to occur.

In House Resolution 993 filed on Tuesday, Ilagan asks the House of Representatives, through the Committee on Housing and Urban Development, to investigate whether the sale of NPLs underwent the proper bidding process, especially with delos Angeles' recently exposed history of lying and falsifying documents.

Representatives of some 5,000 home owners in Davao who sought the progressive legislator's help said that the transfer was done without their consent.

Aside from delos Angeles, Ilagan also demanded an explanation from NHMFC and PS Bank (part-owner of Balikatan since 2007) officials.