NHMFC seals P1.465-B housing deal

The National Home Mortgage Finance Corp. (NHMFC) has secured P1.465 billion through its latest residential mortgage-backed securities (RMBS) issuance, generating fresh liquidity that can help sustain financing for low-cost and socialized housing.

The NHMFC Bonds 8th RMBS issuance, signed 30 September at the Raffles Hotel Makati, is backed by a pool of 2,115 long-term residential loans.

NHMFC president Renato L. Tobias said the latest issuance strengthens the role of the secondary mortgage market in Philippine housing finance by converting long-term housing loan receivables into marketable securities.

Generates fresh liquidity

“By converting long-term housing loan receivables into marketable securities, the National Home Mortgage generates fresh liquidity that can be reinvested into the housing finance ecosystem, while providing investors with opportunities to participate in an asset class backed by residential mortgages,” Tobias said.

Through securitization, NHMFC mobilizes long-term capital that can be reinvested into the housing finance system, supporting efforts to expand access to affordable housing.

The Development Bank of the Philippines-Trust Banking Group (DBP-TBG) served as special purpose trust administrator, while the Land Bank of the Philippines-Investment Banking Group (LBP-IBG) acted as arranger and underwriter.

The Philippine National Bank-Trust Banking Group served as trustee, registrar and paying agent. Moore Roxas Tabamo & Co. was the portfolio auditor, PhilRatings the rating agency, and MOSVELDTT Law Offices the transaction counsel and tax adviser.

DBP-TBG vice president and trust officer Camilo Sanchez said the issuance benefited from a tax exemption for securities backed by low-cost and socialized housing loan receivables.

The Department of Human Settlements and Urban Development certified the asset pool as qualified for the exemption.

Milestone

“This is indeed a milestone for the secondary mortgage sector,” Sanchez said.

For MOSVELDTT senior partner Atty. Jerry S. Coloma III, the transaction highlights the practical impact of housing finance on Filipino families.

“Helping make housing finance available can change what is possible for a family — the stability they can establish and the plans they can make,” Coloma said.

He said NHMFC’s continuing securitization program could help address the country’s considerable housing needs by expanding the pool of financing available to Filipino families.

Representatives of the Korea Housing-Finance Corp., led by Jong Hyun Han, also attended the signing and shared insights on housing finance operations in South Korea.

The latest issuance underscores NHMFC’s effort to connect the housing finance system with the capital market while supporting the government’s housing initiatives.