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Highlights of NHMFC Accomplishments for CY 2015
The National Home Mortgage Finance Corporation (NHMFC), one of the key shelter
agencies in the country, is the major secondary government mortgage institution and is mandated
to accelerate the recycling of funds in the housing sector through the purchase of mortgages from
developers, banks and other financial institutions to serve as asset pool for future securitization.
I. Housing Finance Services
Purchase of quality mortgages and other housing receivables under HLRPP
One of the major programs of NHMFC is the Housing Loan Receivables Purchase Program
(HLRPP). Launched in the last quarter of 2010, HLRPP seeks to liquefy asset portfolio of
housing developers and other home financing institutions by purchasing their seasoned housing
loan receivables to form part of the asset pool for securitization.
For 2015, the NHMFC Credit Committee was able to approve ₱708.60 million worth of housing
receivables or 71% of the ₱1.00 billion annual target. The aggressive marketing efforts and
campaigns for the HLRPP, which practically covered all regions nationwide, paid off as the
amount of housing receivables purchased nearly doubled from ₱353.71 million in 2014.
Table 1: Performance Indicators, Targets and Accomplishments of Purchase of HLRPP
The 100% achievement of the target was primarily hindered by macroeconomic conditions (i.e.
low interest rates, market liquidity, banks has a lot of cash), which made HLRPP not attractive to
its target clients. In order to address the problem, NHMFC developed a modified pricing model
that is aligned with other lending institutions to respond to the demands of clients for lower
interest rates. The modified pricing model will be fully implemented in 2016.
For the turnaround time, the NHMFC was able to achieve an average of 21 working days for the
processing of purchase of accounts under the HLRPP. The process already includes the conduct
of due diligence and release of payment.
II. Account/Loan Management
Collection Efficiency Ratio
With a total collection of ₱2,033.72 million, collection efficiency is at 92.44 percent as of end of
December 2015. The continuous collection programs in the restructuring of accounts and
Performance Indicator Target Accomplishment
Value of housing receivables approved by
Credit Committee for purchase ₱1.00B ₱708.60M
Average turnaround time for provision of
housing finance from receipt of complete
documents
Average of 30
working days
Average of 21
working days
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updating of accounts, partnership with banks/payment centers (SM, Bayad Center, e-Payment
thru Smart Money), outsourcing of collection service partners, and borrower’s counseling
contributed to the collection efficiency performance of the Corporation.
Reduction of Non-Performing Loans/Assets
The strong remediation activities conducted by the NHMFC paid off with accomplishments
surpassing the annual targets. The total disposition of acquired assets and decrease in non-
performing loans reached ₱996.21.
Table 3: Performance Indicators, Targets and Accomplishments of
Account/Loan Management
III. Customer/Stakeholders
Provision of new services/engagements
NHMFC is continuously seeking ways to provide fast and quality service to its clientele through
creation of new programs/services that will simplify the transactions of clients with NHMFC. In
2015, the following endeavours were launched with aim of increasing collection performance
and improving the loan profile of accounts, respectively:
e-Payment for Juan and Juana
With the principal objective of providing borrowers with a more convenient and efficient
alternative to pay their monthly amortizations, NHMFC partnered with Smart
Telecommunications. This is in addition to the already existing alternative collecting
partners of NHMFC such as Development Bank of the Philippines, Philippine National
Bank, Banco de Oro, BPI Family Savings Bank, United Coconut Planters Bank,
Shoemart Retail, Inc. and Bayad Center.
Buyer Initiated Disposal of Asset (BIDA)
The BIDA covers the sale by the Corporation of property subject of foreclosure to any
interested buyer, whether in cash or installment basis. The program intends to move
NHMFC’s non-performing assets to become regular accounts.
Performance Indicator Target Accomplishment
Collection Efficiency Ratio 92%
92.44%
(₱2,033.72M of
₱2,200.00M)
Decreasing the value of acquired
assets/non-performing loans (NPLs) ₱770M ₱996.21M
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The NHMFC Board of Directors approved two (2) new products/services in 2015. These
products/services are BIDA-BULTO and Blue Ocean Projects that will be ready for roll-out in
2016.
Table 2: Board Action on NHMFC’s New Products/Services
Product/Service Board Action
BIDA-BULTO Approved per Board Resolution No. 3856 dated June
3, 2015 the Proposed Guidelines for the Buyer-
Initiated Disposal of Assets in Bulk (BIDA-BULTO)
Blue Ocean Projects Noted during the 285th
NHMFC Board Meeting dated
February 5, 2015
BIDA-BULTO
The BIDA-BULTO intends to sell the Corporation’s non-performing assets in bulk.
Blue Ocean Projects
The three (3) innovative products identified under the NHMFC Blue Ocean Projects are:
(1) Issuance of LGU Bonds Compliant with UHDA
NHMFC intends to purchase the socialized housing projects of LGUs and use these
as the asset pool for the issuance of LGU bonds. The developers’ purchase of LGU
bonds will be considered an alternative compliance of Section 18 of UDHA.
(2) Reverse Mortgage: MAginhawang BUhay dahil sa baHay (MABUHAY)
The project is a means to help the senior citizens with limited current income but
have substantial real estate properties to use these properties (house and lot) as a
source of additional income to cover their basic daily living expenses, pay for their
health care, finance their long dreamed and awaited vacation getaway, and other
financial obligations. This allows the senior citizens to enjoy their lifetime savings
without worrying about payments.
(3) Wholesale/Retail Residential Rental Receivables Acquisition Program and Home
Ownership thru Mortgage for Every Filipino (WR4AP-a-HOME)
This product has two (2) possible options for NHMFC. The first option involves the
purchase of residential rental receivables (house rental/rent) at a discount and
pooling of these receivables for eventual transfer to a Real Estate Investment Trust
(REIT). If the lessee and lessor (Primary Parties) would agree, there is another option
for the sale of the property, from the lessor to the lessee. The sale would be financed
by the NHMFC, in partnership with a bank or a financing institution (Partner). After
4
the Partner seasons these loans, NHMFC purchases the remaining balance. The
receivables from the mortgage will then be pooled for eventual securitization.
Table 3: Performance Indicators, Targets and Accomplishments of
Provision of New Services/Engagements
IV. General Administrative Services (GAS)
ISO 9001:2008 Quality Management System
In 2015, NHMFC continued its efforts to ensure quality service to its clients. A Quality
Management System (QMS) for NHMFC’s securitization of loan mortgage service was
developed.
For the Customer Satisfaction, the NHMFC was able to achieve satisfactory rating for the quality
of service rendered.
Table 5: Performance Indicators, Targets and Accomplishments of
General Administrative Services (GAS)
Competency Framework
The Competency Framework defines the blue print for excellent performance within an
organization. For 2015, NHMFC was able to establish a competency framework that ensures
effective employee selection, provides measures for performance required to meet organization’s
goals, identifies relevant training for job levels (training needs), and develops employees for the
Succession Plan.
Performance Indicator Target Accomplishment
Number of new products rolled-out and
fully subscribed or new services meeting
target income
At least 2
2
(i.e. e-Payment for Juan
and Juana & BIDA)
Number of new, creative and innovative
products/services/ projects/programs acted
upon by the Board
At least 2
2
(i.e. BIDA-BULTO &
Blue Ocean Projects)
Performance Indicator Target Accomplishment
ISO Certification for all processes
Completed
documenting the
QMS for all
processes
Completed
documenting the
QMS for all process
QMS Manual
Signed
Satisfaction rating from the
borrowers Satisfactory Satisfactory
5
Table 6: Performance Indicators, Targets and Accomplishments of
Competency Framework
Information Systems Strategic Plan
The key objective of the NHMFC’s Information Systems Strategic Plan (ISSP) is to develop and
enhance the various application systems of the Corporation to make the systems operational and
responsive to the NHMFC’s requirement. In 2015, eleven (11) systems or 60% of the ISSP were
accepted and implemented as outlined below:
1) Executive Information System (EIS)
2) Liquidity Dash Board
3) Investment and Cash Management System (ICMS)
4) TCT Bilis Release or eMWRF
5) ePayment for Juan and Juana
6) GP – Fixed Assets
7) GP – Cash Flow
8) Document Tracking System (DTS)
9) Disaster Recovery System (DRS)
10) Integration to GP
11) Geographical Management Information System (GMIS)
Table 6: Performance Indicators, Targets and Accomplishments of
Information Systems Strategic Plan
Performance Indicator Target Accomplishment
Competency Framework drafted and
approved
Establish
Competency
Framework
Competency
Framework
Established and
Signed
Performance Indicator Target Accomplishment
% completion of the ISSP 60% 60%