classified into the following categories in accordance with the criteria set inItem II-A hereof:
1.1 Window 1 (Regular) – CTS/REM with Buyback Guaranty1.2 Window 1 (Elite) – CTS/REM with Buyback Guaranty
1.3 Window 2 – CTS without Buyback Guaranty2. The Fund and the accredited developer shall enter into a FundingCommitment Agreement (FCA) providing for among others2.1 That the Fund shall extend a funding commitment line (FCL) to thedeveloper upon compliance with the terms and conditions set by theFund;2.2 That for a developer under Window 1 (Regular) or
, the followingshall apply:2.2.1 That the developer shall receive, evaluate, pre-process andapprove the housing loan applications of the Fund’s member-borrowers in accordance with the applicable Guidelines of thePag-IBIG Housing Loan Program
That the developer shall buy back CTS/REM accounts thatdefault or are affected by breach of warranties during the firsttwo years of the loan.
In the case of a developer under theWindow 1 (Elite) scheme, he shall buy back CTS/REMaccounts with loan values over Seven Hundred and FiftyThousand Pesos (P750,000.00) to One Million Pesos(P1,000,000.00) that default or are affected by breach ofwarranties during the first three years of the loan.2.2.3 That the developer under Window 1 (Elite) scheme shallbe responsible for any liability arising from RA No. 6552,otherwise known as the Maceda Law, for accounts withloan values over Seven Hundred and Fifty ThousandPesos (P750,000.00) to One Million Pesos (P1,000,000.00).
3. For accounts covered by Contract to Sell (CTS)
3.2 The developer shall execute a Contract-to-Sell with the Pag-IBIGmember to cover the purchase of the residential property or lot used ascollateral for the Pag-IBIG housing loan of the member.3.3 The developer shall execute a Deed of Assignment assigning the CTSin favor of the Fund, which shall be annotated in the title of theproperty.3.3 Conversion of CTS Accounts3.3.1 The developer shall convert the security of eligible accountsfrom CTS to REM not later than the 24
month from date of loan takeout and in accordance with Item VIII hereof.
For adeveloper classified as Window 1 (Elite),
conversion ofCTS with loan values over P750,000.00 to P1,000,000.00 toREM shall take place not later than the 36
month fromdate of loan takeout.