The National Home Mortgage Finance Corporation (NHMFC) is a government-owned and controlled corporation (GOCC) dedicated to making home financing more accessible. Established in 1977 through Presidential Decree 1267, NHMFC was created to develop a secondary mortgage market that would increase affordable housing loan availability. By purchasing mortgages from financial institutions and offering them as investment-backed securities, the agency provides liquidity to the housing sector, ensuring more Filipinos can secure long-term housing loans.
NHMFC has undergone multiple transformations to adapt to economic challenges and shifting government priorities. Originally focused on purchasing mortgages from private and public institutions, it later expanded its programs to support socialized housing, mortgage-backed securities, and specialized loan products for low-income earners and senior citizens. Understanding NHMFC is important because it serves as a key player in housing finance, bridging the gap between homebuyers and long-term funding sources while ensuring the sustainability of affordable housing programs in the country. If you are interested in learning more about this agency and the programs they offer, then feel free to keep reading.
NHMFC Overview
The NHMFC is a government agency in the Philippines that provides financial support for affordable housing. It plays a crucial role in the housing sector by purchasing mortgages and converting them into securities, ensuring continuous funding for home loans. NHMFC helps stabilize the housing finance system, making homeownership more accessible to low- and middle-income Filipinos. Its key features include mortgage securitization, sustainable financial management, and efficient loan servicing. By improving access to housing finance, NHMFC supports national development and promotes better living conditions for Filipino families.
History and Development of NHMFC
As an agency, the history of the NHMFC can be traced back to 1977 when Presidential Decree 1267 was enacted to develop a secondary mortgage market and expand affordable housing finance in the Philippines. Initially, it purchased mortgages from private financial institutions and resold them as mortgage-backed securities, but the 1984 financial crisis disrupted its operations. In 1986, Executive Order No. 90 redefined NHMFC’s mandate, directing it to source long-term funds from institutions like SSS, GSIS, and Pag-IBIG to support housing loans. Over the years, it introduced various programs, including the Community Mortgage Program (CMP) and Abot-Kaya Pabahay Fund, to assist low-income families. Today, NHMFC continues to innovate through securitization, socialized housing initiatives, and specialized loan programs to sustain housing affordability for Filipinos.
Logo
The NHMFC logo features a stylized yellow pentagon with a blue ribbon-like design in the center. The pentagon symbolizes stability and strength, reflecting the corporation’s role in housing finance. The blue ribbon-like element represents unity and the connection between the government and the people in providing homeownership opportunities. The logo is accompanied by the organization’s name in bold, blue capital letters, emphasizing its official and trustworthy presence. Below the name, the tagline “Every Filipino deserves a home and it should never take too long…” highlights NHMFC’s mission to make housing accessible and efficient for all Filipinos.
Mission
“NHMFC aims to support housing market liquidity and affordability by strengthening secondary mortgage operations and enhancing its financial services.”
Vision
“By 2025, NHMFC envisions itself as the leading developer of innovative mortgage products in the Philippines.”
Core Values
NHMFC operates with a commitment to:
- Integrity: Ensuring transparency and accountability in mortgage operations.
- Competence: Providing high-quality housing finance services.
- Sustainability: Developing long-term solutions for housing affordability
Objectives and Responsibilities
NHMFC operates by acquiring housing mortgages from various institutions and repackaging them into financial instruments for investment. The goal is to expand home financing options for Filipinos by attracting funds from public and private investors. NHMFC’s primary sources of funds include the Social Security System (SSS), Government Service Insurance System (GSIS), and Home Development Mutual Fund (Pag-IBIG Fund).
It’s main responsibilities as a government agency include:
- Providing funds for the housing sector by converting mortgages and assets into marketable securities.
- Helping stabilize the housing finance system by joining the capital market.
- Building a strong and well-organized team that follows industry best practices.
- Operating efficiently and managing the corporate finances wisely to keep programs sustainable.
- Overseeing subsidiaries properly to ensure smooth operations.
How NHMFC Helps Homebuyers
NHMFC assists homebuyers by expanding financing options through mortgage purchases, securitization, and partnerships with housing agencies.
- Lower interest rates on mortgages
- Long-term financing options
- Availability of socialized housing loans
- Flexible payment and restructuring programs
- Secure and regulated housing finance system
NHMFC’s Programs and Services
NHMFC offers various financing solutions tailored to developers, homebuyers, and mortgage lenders. Some of these programs are as follows:
Mortgage Programs for Developers & Financial Institutions
- HOME Program (HLRPP-1): Housing Loan Receivable Purchase Program (HLRPP) for general mortgage takeout.
- SHeLTeR (HLRPP-2): Affordable financing for socialized housing developers and microfinance institutions.
- MABUHAY (HLRPP-3): Reverse mortgage for senior citizens.
- BALAI BERDE (HLRPP-4): Green housing financing initiative.
Collection and Loan Recovery Programs
- Six to Twelve Months Updating Plan (STUMP): Loan restructuring option for delinquent borrowers.
- BIDA-BULK Sale: Sale of non-performing loans to investors.
- Assumption of Mortgage: Transfer of mortgage responsibility to a new borrower.
Homebuyer Programs
- Ease on the Disposal of Assets Program (EDSAP): Assists buyers in purchasing NHMFC-acquired properties.
- Online Mortgage Payment System: Allows borrowers to pay their housing loans online.
Online Services
NHMFC provides several digital platforms to streamline housing finance processes:
- Online Appointment System: For loan applications and inquiries.
- Residential Loan Takeout System: Allows institutions to submit loans for purchase.
- Mortgage Calculator: Helps estimate monthly payments.
- Employer’s Remittance Verification & Monitoring System: For employer-assisted housing loan payments.
- Online Payment & Inquiry System: For managing accounts and loan status.
Video: Understanding the National Home Mortgage Finance Corporation (NHMFC)
The National Home Mortgage Finance Corporation (NHMFC) is a vital housing finance institution in the Philippines, providing affordable mortgage options and sustaining the secondary mortgage market. With its extensive programs and commitment to housing development, NHMFC continues to support Filipino homebuyers by making homeownership more accessible and sustainable. To learn more about this GOCC, then you can check out this video from Philippine Realty TV:
Contact Information
For inquiries about housing finance, loan applications, and NHMFC programs, you can reach them through the following channels:
National Home Mortgage Finance Corporation (NHMFC)
- Head Office: Filomena Bldg., 104 Amorsolo St., Legaspi Village, Makati City
- Public Assistance: (8) 892-5243
- Website: www.nhmfc.gov.ph
- Key Departments:
- Housing Finance Program: (8) 893-0491
- Marketing Department: (8) 892-5503
- Mortgage Acquisition: (8) 892-5194