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- Purchase of Quality Mortgages and other Housing Receivables under Housing Loan Receivables Purchase Program (HLRPP)
- Securitization of Home Mortgages and Other Housing Receivables
- Provision of Financial Advisory/ Consultancy and Other Services/Engagements
- Master Servicer of Securitized Accounts / Management of Accounts
- Provision of high yield/ affordable instruments for retail investors (yield of Philippine Dealing System Treasury Reference Rates (PDSTF) + spread
- Quality of Bonds
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I. The Agency’s Charter and Mandate, Mission and Vision, Board of Directors, Organizational Chart, and Key Officers' Contact
II. Annual Report
III. DBM Approved Budgets and Corresponding Targets
IV. Major Projects and Programs
V. Annual Procurement Plan, Contract Awarded, and Service Deliveries
Annual Procurement Plan CY 2012
Annual Procurement Plan CY 2011
Financial and Operating Resources
NHMFC has an improving balance sheet, a healthy cash flow sustained by the successful mortgage-backed security issuances – the BahayBonds 1 and 2 (BB1 and BB2), a reliable collection program, and a program supportive of an aggressive growth plans.
The Corporation continued to reap strong financial results as shown by the net income registered at the end of the calendar year 2012.
Net income for 2012 was registered at P117 million (net of Government Subsidy of Php500 million). This was a 305% increase from the 2011 net loss of P57 million. NHMFC is now looking forward to more profitable years as it vigorously pursues more aggressive and innovative financial programs. The mortgage-back-securities dubbed as BB1 and BB2 turned out to be successful, proving to all stakeholders that NHMFC is on the right track to be the authority in the secondary mortgage market operation in the Philippines in due time.
Revenues and Expenses
Gross revenues increased by 93% to Php4,490 million from the Php2,323 million registered in the previous year. The growth was mainly attributable to income derived from debt restructuring with the Government Service Insurance System (GSIS).
The Maintenance and Other Operating Expenses (MOOE) and the Personal Services (PS) increased by 375% to Php3,815 million. The increased in MOOE was due to the increase in bad debts provisioning. In addition to solid programs adopted for collections, the management had implemented a more credible basis to adequately cover possible losses on loan exposures. The increased in PS was mainly due to compensation adjustment during the year.
The Corporation's total assets of Php33,631 million was lower than the previous year's total of Php36,957 million by 9%. The decrease was mainly due to the intensified utilization of funds for the various financial programs of the corporation. The vigorous program implementations are aimed at benefiting the Corporation in the long term.
For the past three years, NHMFC has been known for its innovative Bahay Bonds issuances.
Source of Funds
Collection of amortization for mortgage loan receivable is the principal source of funds for NHMFC. Amortization receipts include principal repayments, interest, and penalty. Other sources of funds are the proceeds from the sale of acquired assets.
Amortization collection increased by about 21% to Php2,890 million over the previous year's Php2,393 million. The increase was the result of various aggressive collection strategies, including lenient restructuring schemes on past due accounts.
Application of Funds
Purchase of mortgages under the HLRPP increased by 1,612% to Php736 million in 2012 from the Php43 million in 2011. Debt servicing to Funders also increased by 43% to Php2,264 million from Php1,587 million in 2011.
Loan Receivable Portfolio Quality
The Corporation's mortgage loan portfolio with a total value of Php20,854 million was 4% lower than the previous year's balance of Php21,651 million. This was the result of full payments on loans and other collection strategies being implemented by the Corporation.
The adoption of the new loan loss provisioning formula brought the valuation reserves for the NHMFC's past due loan accounts to 20%. This coverage ratio placed the company assets to a more conservative valuation, considering that all receivables are covered by yet adequately valued properties.
NHMFC continues to adopt innovative collection programs aimed at improving the quality of the loan receivable portfolio and in securing continuity of cash flows.