Vous êtes sur la page 1sur 5

HISTORY

The National Home Mortgage Finance Corporation


was created in 1977 by virtue of Presidential Decree
1267, with the mandate of increasing the availability
of affordable housing loans to finance the Filipino
homebuyer acquisition of housing units through the
development and operation of a secondary market
for home mortgages. Consistent with this mandate
NHMFC bought mortgages originated by private
financial institutions, and eventually sold them back
to the public through the issuance of mortgage
backed financial instruments.
However, the financial crisis which hit the country in
1984 up to the early part of 1986 caused the collapse
of a relatively successful home-financing program of
the government. Since a sizeable portion of NHMFC
funds came from the financial market, in addition to
funds coming from contributions of PAG-IBIG members, the 30% to 40% interest rates in the financial
market made it impossible for NHMFC (whose lending rate was pegged at 9%) to operate viably.
With the assumption into office of the Aquino Administration in 1986, there was already a felt need to
reorganize the government housing agencies and define their new mandates. Executive Order No. 90 on
December 17, 1986, gave fresh mandates to the five housing agencies, NHMFC included. As the major
government home mortgage institution, NHMFC was tasked to operate a viable home mortgage market,
utilizing long-term funds principally provided by the Social Security System (SSS), the Government
Services Insurance System (GSIS), and the Home Development Mutual Fund (HDMF), to purchase
mortgages originated by both private and public institutions that are within government-approved
guidelines. It was also charged with the development of a system that will attract private institutional
funds into long-term housing mortgages.
In view of the above, NHMFC clientele was expanded to include among others, borrower-members of
SSS and GSIS (in addition to PAG-IBIG members), and even non-members of these institutions, as well
as developers of low-cost housing projects. And among the qualified originators were added: private
developers, government agencies, community associations, local government units and non-government
organizations, together with private financial institutions.
Until 1995, NHMFC was operating under the Executive Order No.90 mandate, but ceased to do so with
the signing of a Memorandum of Agreement on Housing Finance with the Department of Finance,
Department of Budget and Management, and the Funders (SSS, GSIS & HDMF) which transferred the
processing and payment of mortgages to HDMF in 1996.
Despite the suspension of the UHLP, the Corporation continuously administered the Community
Mortgage Program (CMP) as amended under R.A. 7279 - UDHA of 1992. Further, the Abot-Kaya
Pabahay Fund Program, which was created under R.A. 6486 in 1990 continued to be administered by
NHFMC. In December 1994, R.A 7835 (or the CISFA 1995) was enacted into law and further amended
R.A. 6846 and provided for the continuing funding support for the CMP and the Abot-Kaya Pabahay
Fund Program.

The economic slowdown of 1998 took its toll in the asset recovery program of NHMFC. The Corporation
continuously failed to register positive financial marks. Early on the Estrada Administration, a
Memorandum, dated May 20, 1999 from the President addressed to HUDCC, DOF, DBM and SEC was
issued, constituting them into a Task Force to prepare the appropriate disposition plan for NHMFC.
Then President Estrada issued Executive Order 195 dated December 31, 1999 directing all governmentowned and controlled corporations under the HUDCC and the Presidential Commission on Mass Housing
(PCHM) to prepare their respective Rationalizing and Streamlining Plans. The E.0. also mandated, among
others, NHMFC to re-direct its operations to the development and provision of a secondary mortgage
market to finance mortgage take-out and fast track the disposition of existing mortgages. The E. O.
provided the President policy direction with respect to NHMFC.
In the 1st quarter of 2002, as part of an overall rehab program, NHMFC hired Punongbayan &
Araullo/Ernst & Young (P&A/E&Y) as its Financial Advisor. In the last quarter of the same year, the
Corporation undertook a Restructuring Agreement with the Funders (SSS & HDMF) and started the
processing for the Sale of the Non-Performing Loans (NPLs) of the UHLP portfolio.
In 2003, NHMFC announced the competitive auction sale of the NPLs after pre-qualifying potential
bidders. This sale is part of a strategy that will reposition the Corporation to meet the future affordable
housing needs of the Filipino people. This realignment process actually started during the second quarter
of 2002 with the direct involvement of Senior Management of the NHMFC, SSS, HDMF, HUDCC & the
DOF.
NHMFC realignment included the formal restructuring of its P46 B outstanding debt balance with SSS
and HDMF and obtaining approval from all the required government bodies to implement its plan to
dispose of the portfolio of delinquent loans. This complex approval process required a consensus among
all the parties and took more than one year to achieve.
In June 20, 2004, Executive Order 272 authorized the creation of the Social Housing Finance
Corporation, a wholly-owned subsidiary of NHMFC. One year after, or in June 21, 2005 the Community
Mortgage Program (CMP), and the amortization, as well as the developmental component of the AbotKaya Pabahay Fund (AKPF) Program of NHMFC, was officially entrusted to the SHFC. Mandated to be
the lead government agency to undertake social housing programs for the low-income earners, SHFC has
assumed the implementation of the AKPF and CMP, which for more than 17 years now, has been the most
affordable, long-term microfinance facility to meet land tenure and housing security requirements of those
so-called "poorest of the poor." It is now recognized as the most successful housing program for the
homeless and the underprivileged sector of our society
Because of the Spin-off of the CMP and AKPF programs to SHFC, and the sale of its Non-performing
Loans (NPLs) to Balikatan Housing Finance, NHMFC in September 2006 began the process of
rationalizing its manpower structure. The Plan for Reorganization was approved by DBM and CSC in
November of 2006 and was implemented and completed in June of 2007. The Manpower complement of
NHMFC was reduced by half, with the new structure downsizing its functions related to collection
activities and CMP, and instead focusing more on establishing a Secondary Mortgage Institution.
In August 2007, NHMFC engaged the services of Ernst & Young Transaction Advisory Services Inc. to
act as Financial Advisor, assist in the maiden securitization and lay the building blocks for the
transformation of NHMFC into an SMI. EY TASI conducted due diligence on the low delinquent

accounts of NHMFC and is assisting the corporation in matters of finance, accounting, regulatory and
legal implications of the securitization transaction.
In August 2008, NHMFC brought on board the securitization expertise of Standard Chartered bank as
underwriter and Lead arranger for the maiden securitization issue, along with the Trustee and Special
Purpose Trust, namely, DBP and PNB respectively.
On March 23, 2009, the NHMFC launched the maiden securitization issue of the 2.06 Billion Bahay
Bonds. This is the first residential mortgage backed securities (RBMS) issued in the Philippines by a
government agency. It is significant to note that the NHMFC maiden Bahay Bonds issue took place at a
time when global economic crisis brought about by sub-primed mortgages was at its height. The
transaction was rated AA by the Philippine Rating Services Corporation (PhilRatings) and the bonds were
twice oversubscribed. For this transaction, the NHMFC was given recognition by the Asset Asian Awards
2009 and was awarded the Triple A Award category 2009 Securitization of the Year.
On November 19, 2009, the Board approved the proposed Guidelines on the Housing Loan Receivable
Purchase Program (HLRPP) and grant authority for the NHMFC President to approve all purchases under
the HLRPP. The NHMFC shall purchase the housing loans receivables from the originating institutions
and will be turned into an asset pool for eventual issuance of securities or bonds for sale in the capital
market. With this program, the NHMFC will continue to perform its mandate as a Secondary Mortgage
Institution (SMI) to operate a viable housing finance system thru the securitization of the residential home
mortgages.
On August 2012, NHMFC issued the second of its Bahay Bonds series (BB2). It is the first ever retail
mortgage-backed securities (RMBS) issued in the country and was given a conditional rating of PRS Aa
by the Philippine Rating Services Corporation (PhilRatings). The following year, NHMFC was awarded
by the Philippine Dealing System Holdings Corporation & Subsidiaries (PDS Group) with the Innovative
Listed Corporate Bond Issue of the Year for the pioneering issuance of BB2 Special Purpose Trust.
On March 2013, the NHMFC was awarded ISO 9001:2008 for the Rizal Division after audit stages
conducted by Tv Sd PSB Philippines. On 2014, NHMFC has expanded ISO certification for the
Borrower Counseling System of the Rizal, NCR and Luzon Division, Extra-judicial foreclosure process
(Buyer-Initiated) of the Litigation Division and Release of Title process of the Securities and Mortgage
Custodianship Division

COMPANY PROFILE
GOALS AND OBJECTIVE

Provide liquidity to the housing sector through securitization of mortgages/assets.


Promote stability to the housing finance housing finance system through participation in the
capital market.
Establish an efficient and effective organization with a professional workforce utilizing best
practices.
Maintain efficiency in operation and efficacy in financial management to ensure sustainability of
its programs.
Manage its subsidiaries efficiently and effectively.

PRODUCTS AND SERVICES


HOUSING LOAN RECEIVABLES PURCHASE PROGRAM (HLRPP)
Is an alternative venue for housing developers, banks, Local Government Units, cooperatives, and other
financial institutions with housing programs to sell qualified housing receivables directly to NHMFC.
Features
Loan Term
-up to 25 years
Loan Qualified for Purchase
-Contract to sell(CTS)
-Real Estate Mortgage (REM)
Interest Rates
-8% PER ANNUM-Php 1.0 M & below
-10% per annum-over Php 1.0M
Equity & Seasoning Periods
-Payment of not less than 20% of contract price
-6 consecutive monthly amortizations
Payment of not less than 10% of contract price
-12 consecutive monthly amortizations
Loan-To-Value Ratio
-20% downpayment: LTV ratio of not less than 80%
-10% down payment: LTV rato of not more than 90%
CTS To REM Conversion
-Remaining 5year term
-2year conversion from date of tke-out
-10% hold-out based on original contract price
Fees &Charges
-Processing fee: Php 2000/account
-Appraisal fee: Php 1000/account
-One year prepaid insurance (MRI/Fire & Lghting)

How to Sell Your Housing Receivables to NHMFC


1. Submit letter of intent and other documentary requirements
2. Inform borrower of the sale
3. Submit to due diligence process
a. Originating Institution
b. Housing Project
c. Borrower
4. Notice of approval sent to you and your borrower
5. Release of take-out proceeds (your housing receivables are now converted to cash)
6. Transfer to NHMFC of the purchase housing loan receivables
7. Borrower issues post-dated checks to cover remaining monthly amortization payments

E-Payment Service for Juan & Juana


Pay the monthly Amortization through phone with SMART E-Money
TCT BILIS Release
Bahay Bonds
A five-year residential mortgage-backed securitization program aimed at raising P300 million to
P604 million for NHMFC in order to sustain its housing loan services to its beneficiaries.
NHMFC Collection Partners
Acquired Asset for Sale

Vous aimerez peut-être aussi