Tuesday, March 24, 2009 [ manilatimes.net ]
The National Home Mortgage and Finance Corp. (NHMFC) said it plans to issue another securitized BahayBonds before the end of the year to fund its debts with government financial institutions.
Jose Peter Sison, NHMFC president, said the state-run firm plans to issue at least P2.4 to P2.5 billion worth of BahayBonds in November to finance its debts with the Social Security System (SSS) and Home Mutual Development Fund (Pag-IBIG Fund).
“We’re going to settle our obligations by using the existing accounts,” Sison told reporters on the sidelines of the signing ceremony with the BahayBonds participating institutions on Monday.
The planned transaction is composed of 16,000 of low delinquent or good quality accounts.
“We’re going to use the funds to pay loans and to buy new mortgages and then securitize,” he added.
NHMFC—one of the largest sources of home mortgage funds in the Philippines primarily for the low-cost and socialized housing sectors—has a remaining P25-billion debt with SSS and Pag-IBIG as of February this year. It has paid an aggregate amount of P52 billion to these two state-run financial institutions.
UK-based Standard Chartered Bank (SCB) signed a residential mortgage backed securitization (RMBS) agreement with NHMFC on Monday to underwrite the planned debt paper sale.
The RMBS would amount to P2.2 billion, consisting of a pool of 13,000 residential mortgage loans. This instrument is a type of security wherein cash flows would come from residential debts such as mortgages, home-equity loans and sub-prime mortgages.
State-owned Home Guaranty Corp. (HGC) will back up the repayment of the loans while BDO Unibank president Nestor Tan and Rizal Commercial Banking Corp. president Loranzo Tan also signed their commitments to invest in BahayBonds.-- Maricel E. Burgonio
