If there is one government agency that was hit hard by the Asian financial crisis in the 1990s, it could be the National Home Mortgage Finance Corporation (NHMFC).

It almost folded due to borrowers’ failure to pay amortization — resulting in huge losses.

In fact, between 1995 and 1996 the NHMFC decided to stop offering housing loans and focused on internal cleansing which identified current or good borrowers and the defaulting or bad borrowers.

Prior to the crisis, the NHMFC was among the biggest, if not the biggest, housing loan provider in the country having the Home Development Mutual Fund or Pag-IBIG as a mere collection unit under it.

Currently, Pag-IBIG Fund is a bigger government entity than NHMFC in terms of assets.

Fast-forward today, NHMFC Vice President Rosabella Jose said the corporation is rebounding from the crisis.

“We can now say that the National Mortgage is on a sound financial status,” declared Jose during Tuesday’s “Straight Talk with Daily Tribune.”

The issue concerning bad loans was already addressed by the years of proper management. Jose said collection from borrowers is now between P2 to P3 billion annually.

The NHMFC is catering to three types of borrowers composed of the economic, low cost and socialized clientele. However, majority of its borrowers come from the economic and low-cost segments where a borrower can avail of up to P3 million in housing loan.

“We roll over these (collections) from the economic and low-cost housing loans because we only have small program for socialized housing where we receive assistance from the government,” said Jose.

Unlike the Pag-IBIG Fund, NHMFC does not require membership for an individual to avail of a housing loan.

The only requirement is the borrower should be a Filipino with the capacity to pay for the amount being loaned, practically a proof of income.