National Home Mortgage Finance Corporation (NHMFC) is a government-owned and controlled corporation in the Philippines, established in 1977 under Presidential Decree No. 1267.
It operates under the Department of Human Settlements and Urban Development (DHSUD) and is mandated to enhance the availability of affordable housing loans for Filipino homebuyers.
NHMFC achieves this by developing and maintaining a secondary market for home mortgages, purchasing mortgages from private financial institutions, and reselling them through mortgage-backed financial instruments.
Over the years, NHMFC has introduced various programs and innovations, such as the Housing Loan Receivables Purchase Program (HRLPP) and the issuance of Bahay Bonds, to foster liquidity and accessibility in the housing sector.
The corporation also oversees subsidiaries like the Social Housing Finance Corporation (SHFC) to implement social housing programs, thereby addressing the housing needs of low-income and underserved sectors.
Through continuous adaptation and strategic efforts, NHMFC plays an important role in promoting homeownership and stability in the Philippine housing finance system.
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NHMFC’s Mission and Vision
Mission
“To sustain the liquidity and affordability in the housing market through the strengthening of secondary mortgage operation, upscaling of products and services, and stakeholders’ satisfaction.”
Vision
“By 2025, the NHMFC shall be the leader in the development of innovative products and services in the secondary mortgage market system.”
Historical Context
NHMFC was created to address the housing needs of Filipinos by optimizing government resources.
The financial crisis of 1984-1986 significantly impacted NHMFC, leading to high-interest rates and operational challenges.
In response, the Aquino administration redefined the mandates of government housing agencies, including NHMFC, through Executive Order No. 90 in 1986.
Mandate and Objectives
NHMFC’s primary mission is to enhance the availability of affordable housing loans for Filipinos.
This is achieved by developing and maintaining a secondary market for home mortgages.
The corporation buys mortgages from private financial institutions and resells them through mortgage-backed financial instruments.
Key Functions
1. Secondary Mortgage Market
NHMFC’s main role is to provide a secondary market for home mortgages.
This involves purchasing mortgages from originators and selling them as mortgage-backed securities.
2. Liquidity Provision
By securitizing mortgages, NHMFC provides a steady flow of funds in the housing sector, making new housing loans accessible.
3. Capital Market Participation
NHMFC contributes to the stability of the housing finance system by actively participating in the capital market.
4. Professional Workforce
The corporation aims to establish an efficient organization with a skilled workforce, adhering to best practices to support program sustainability.
Programs and Innovations
1. Housing Loan Receivables Purchase Program (HRLPP)
This program facilitates the purchase of housing loan receivables, providing liquidity to lenders for a continuous flow of funds for housing loans.
2. Residential Loan Takeout Portal (RLT-P)
Launched in 2023, this digital platform streamlines the HRLPP process, making it more efficient for originators.
3. Bahay Bonds
NHMFC has issued mortgage-backed securities like the Bahay Bonds series, aimed at attracting private investment into the housing sector.
Subsidiaries and Related Entities
Social Housing Finance Corporation (SHFC)
Created in 2004 as a subsidiary of NHMFC, SHFC is responsible for implementing social housing programs like the Community Mortgage Program (CMP) and the Abot-Kaya Pabahay Fund (AKPF).
Corporate Structure and Governance
NHMFC is governed by a Board of Directors, which oversees its operations and ascertains the effective fulfillment of its mandate.
The corporation’s head office is located in Makati City, with several branches across the Philippines to facilitate nationwide operations.
The Journey of NHMFC
Since its establishment, NHMFC has continuously adapted to meet the evolving housing needs of Filipinos.
In its early years, the corporation faced significant challenges due to economic instability.
However, through strategic reforms and innovative programs, NHMFC has strengthened its role in the housing finance sector.
Achievements and Milestones
NHMFC’s efforts in developing a secondary mortgage market have been marked by several key achievements:
1. Introduction of the Housing Loan Receivables Purchase Program (HRLPP)
This program has played an essential role in maintaining liquidity in the housing sector.
2. Launch of the Residential Loan Takeout Portal (RLT-P)
The digital platform has significantly improved the efficiency of processing housing loans.
3. Issuance of Bahay Bonds
These mortgage-backed securities have successfully attracted private investment, contributing to the stability and growth of the housing finance market.
NHMFC’s Future Goals
NHMFC continues to seek ways to enhance its services and meet the housing needs of low-income and underserved sectors.
1. Expansion of the Socialized Housing Loan Takeout of Receivables (SHeLTeR) Program
Launched in 2016, this program aims to purchase socialized housing loan receivables from various entities, offering more affordable terms.
2. Introduction of the MAginhawang BUhay dahil sa baHAY (MABUHAY) Program
This program, also launched in 2016, allows senior citizens to convert a portion of their home equity into cash, addressing their financial needs.
Recent Updates
NHMFC Holds Mid-Year Assessment Focused on Strategic Synergy
The National Home Mortgage Finance Corporation (NHMFC) recently held a three-day mid-year assessment meeting for its key leaders. The meeting aimed to review the company’s progress in the first half of the year and identify areas for improvement in the remaining months. President Renato L. Tobias emphasized the importance of the assessment as a tool for continuous improvement and encouraged participants to use the meeting as an opportunity to learn from one another and strive for excellence. The meeting’s theme, “Adjusting for Success through Strategic Coordination,” highlights the crucial role of collaboration in achieving the company’s goals. (NHMFC)
NHMFC President Receives Real Estate Excellence Award
NHMFC President Renato L. Tobias was honored with the Real Estate Management Diplomat award by FIABCI-Philippines and the Philippine Real Estate Educators Council. The prestigious award acknowledges his exceptional support and significant contributions to the real estate sector. The award ceremony took place at the Property and Real Estate Excellence Awards and Gala Dinner held at the Manila Hotel on June 4, 2024. President Tobias’ dedication and impact on the real estate industry were recognized by esteemed presenters including FIABCI-PH Chapter President Arch. Nestor Mangio and FIABCI World President Budiarsa Sastrawinata. (NHMFC)
NHMFC Midyear Assessment Emphasizes Strategic Synergy
Key leaders of the National Home Mortgage Finance Corporation recently gathered for a 3-day midyear assessment focusing on strategic synergy to achieve the corporation’s targets for 2024. President Renato L. Tobias highlighted the importance of the assessment in recalibrating strategies and setting a clear path for the upcoming months. He praised the team’s talent and dedication, encouraging collaboration to elevate the corporation to greater success. President Tobias urged participants to seize the opportunity to learn from each other and collectively excel during this assessment.
The National Home Mortgage Finance Corporation (NHMFC) has partnered with the Municipality of Roxas, Isabela and Uanjelle Land, Inc. to develop Green Valley Residences, a socialized condominium housing project aimed at providing affordable housing for over 4,000 families. The project is estimated to cost Php6 Billion and is part of the government’s Pambansang Pabahay Para sa Pilipino (4PH) program. NHMFC will purchase the housing loan portfolio, providing access to secure and affordable housing for Filipinos. President Renato L. Tobias highlighted the importance of this partnership in bringing the 4PH program to fruition, emphasizing the corporation’s commitment to providing safe and secure homes for all Filipinos.
Video: Mga mandato ng National Home Mortgage Finance Corporation
The National Home Mortgage Finance Corporation is tasked with providing financial assistance for housing needs in the Philippines. It plays an important role in facilitating affordable housing loans and promoting homeownership. The NHMFC aims to address housing challenges and improve accessibility to housing finance for Filipinos. Through its mandates, the corporation contributes to the development of sustainable housing solutions nationwide.
Conclusion
The National Home Mortgage Finance Corporation (NHMFC) plays a primary role in the Philippine housing finance system.
Through its innovative programs and commitment to providing affordable housing loans, NHMFC strives to make homeownership more accessible for Filipinos.
By continuously adapting to market needs and leveraging best practices, NHMFC remains a key player in promoting the stability and growth of the housing sector.
Contact Information
Head Office: Filomena Bldg. III, 104 Amorsolo St., Legaspi Village, Makati City
Public Assistance: 8-892-5243
Inquiries: 8-893-1501
Website: nhmfc.gov.ph