For many Filipinos, home ownership is perhaps one of their biggest goals. But for many of them, owning a home is both a dream and a major financial challenge.
Since its establishment in 1977, the National Home Mortgage Finance Corporation (NHMFC) has been working to help build these dreams, making home ownership possible for Filipinos from all walks of life by simplifying housing finance into practical solutions that are easily accessible for many Filipino families.
Innovation through challenging times
The NHMFC has been consistent in adapting to circumstances– meeting changing economic conditions and housing needs. In December 1986, towards the end of the financial crisis of 1984-1986, it received a fresh mandate as the major government home mortgage institution.
The Unified Home Lending Program (UHLP) marked NHMFC’s early commitment to comprehensive housing solutions. Operating under Executive Order No. 90, UHLP streamlined housing finance by using long-term funds from the Social Security System (SSS), Government Services Insurance System (GSIS), and Home Development Mutual Fund (HDMF). The program demonstrated NHMFC’s ability to coordinate with multiple government agencies to create accessible housing finance options.
In 2009, the NHMFC successfully launched the 2.06 Billion Bahay Bonds, right in the midst of another global financial crisis, the first time a Philippine government agency issued residential mortgage-backed securities. The market’s response was clear – the bonds were oversubscribed twice, demonstrating strong confidence in the NHMFC.
Different needs, different solutions
The NHMFC understands that different Filipinos need different paths to home ownership. To address these diverse needs, it has developed a range of programs that respond to various housing challenges.
For low-income families, the Socialized Housing Loan Takeout of Receivables (SHeLTeR) program launched in 2016 created new opportunities for home ownership. By partnering with microfinance institutions, cooperatives, local governments, and developers, SHeLTeR is able to assist families who might not qualify for traditional bank loans, giving them access to financing alternatives.
Designed for the underserved many, the program has been able to socialize the housing market, making it more affordable and accessible to more Filipinos.
The Community Mortgage Program (CMP) offers a unique approach to housing finance by encouraging collective ownership, helping organized communities purchase and develop land together, strengthening community bonds while providing housing.
The program’s success was what led to the creation of the Social Housing Finance Corporation (SHFC) in 2004, a development that expanded NHMFC’s social housing initiatives.
The MAginhawang BUhay dahil sa baHAY (MABUHAY) program, introduced in 2016, broke new ground as the Philippines’ first reverse mortgage program, addressing the unique needs of a different segment of the population. Through the program, senior citizens convert their home equity into cash while continuing to live in their homes, so they can meet their various financial needs after retirement, all the while maintaining their independence and dignity.
Through the MABUHAY program, elderly homeowners are able to make the most of their properties’ value without having to sell or leave their homes, allowing them with financial flexibility during their later years.
Removing barriers for easier access
Through the years, the NHMFC continues to remove barriers to home ownership. The new Residential Loan Takeout Portal (RLT-P) brings housing finance into the digital age, digitizing housing finance processes, to make them convenient, efficient and user-friendly.
The Abot Kaya Pabahay Fund provides crucial support for families earning less than PHP 5,000 monthly, effectively showing NHMFC’s commitment to serving the most economically vulnerable sectors of society.
Sustainability through sound financial
management and quality service
Sound financial management is the key to the NHMFC’s success. With the successful restructure of P46 billion in debt, NHMFC ensured the capacity to sustain support for future generations of would-be homeowners. This achievement also earned NHMFC recognition from various institutions, including the Asset Asian Awards in 2009 for securitization excellence.
In 2012, NHMFC marked another milestone by issuing the second series of Bahay Bonds (BB2), the country’s first retail mortgage-backed securities. This innovation earned recognition from the Philippine Dealing System Holdings Corporation & Subsidiaries (PDS Group).
NHMFC’s commitment to quality service is reflected in its ISO certifications. Starting with ISO 9001:2008 certification for the Rizal Division in 2013, NHMFC expanded its certified processes to include borrower counseling, legal services, and mortgage financing operations. By 2016, the corporation had achieved ISO certification for its nationwide operations, showing its dedication to providing the highest quality service to Filipino families.
Building the future of Filipino housing
Today, NHMFC plays a vital role in the Pambansang Pabahay Para sa Pilipino (4PH) program, continuing its mission to improve housing accessibility. The corporation actively works with various stakeholders – from government agencies to private developers – to create more opportunities for home ownership.
As housing needs continue to evolve, NHMFC adapts and grows. Each program and initiative serves the same purpose – making home ownership achievable for more Filipino families. This mission is what keeps driving NHMFC’s work: ensuring that every Filipino has the opportunity to own a home, and build a better future for generations to come.
