NHMFC

(National Home Mortgage Finance Corporation)

I.

History

The National Home Mortgage Finance Corporation was created in 1977 by

Presidential Decree 1267, with the mandate of increasing the availability
affordable housing loans to finance the Filipino homebuyer's on their
acquisition of housing units through the development and operation of
secondary market for home mortgages. Consistent with this mandate
NHMFC bought mortgages originated by private financial institutions
eventually sold them back to the public through the issuance of
mortgage backed financial instruments.

virtue of
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and

However, the financial crisis which hit the country in 1984 up to

the early part of 1986 caused the collapse of a relatively successful
home-financing program of the government. Since a sizeable portion of NHMFC
funds came
from the financial market, with addition to funds coming from contributions of PAG-IBIG members,
the 30% to 40% interest rates of the financial market made it impossible for NHMFC (whose lending
rate was pegged at 9%) to operate viably.
With the assumption into office of the Aquino Administration in 1986, there was already a felt need to
reorganize the government housing agencies and define their new mandates. Executive Order No.
90 on December 17, 1986, gave fresh mandates to the five housing agencies, NHMFC included. As
the major government home mortgage institution, NHMFC was tasked to operate a viable home
mortgage market, utilizing long-term funds principally provided by the Social Security System (SSS),
the Government Services Insurance System (GSIS), and the Home Development Mutual Fund
(HDMF), to purchase mortgages originated by both private and public institutions that are within
government-approved guidelines. It was also charged with the development of a system that will
attract private institutional funds into long-term housing mortgages.
In view of the above, NHMFC clientele was expanded to include among others, borrower/members
of SSS and GSIS (in addition to PAG-IBIG members), and even non-members of these institutions,
as well as developers of low-cost housing projects. Other qualified originators were added: private
developers, government agencies, community associations, local government units and nongovernment organizations, together with private financial institutions.
Until 1995, NHMFC was operating under the Executive Order No.90 mandate, but ceased to do so
with the signing of a Memorandum of Agreement on Housing Finance with the Department of
Finance, Department of Budget and Management, and the Funders (SSS, GSIS & HDMF) which
transferred the processing and payment of mortgages to HDMF in 1996.
Despite the suspension of the UHLP, the Corporation continuously administered the Community
Mortgage Program (CMP) that was amended under R.A. 7279 - UDHA of 1992. Further, the AbotKaya Pabahay Fund Program, which was created under R.A. 6486 in 1990 remained under
administration of NHFMC. In December 1994, R.A 7835 (or the CISFA 1995) was enacted into law
and further amended R.A. 6846 that provided for the continuing funding support for the CMP and the
Abot-Kaya Pabahay Fund Program.
The economic slowdown of 1998 took its toll in the asset recovery program of NHMFC. The
Corporation continuously failed to register positive financial marks. Early on the Estrada

Administration, a memorandum dated May 20, 1999 from the President addressed to HUDCC, DOF,
DBM and SEC was issued, constituting them into a Task Force to prepare the appropriate disposition
plan for NHMFC.
Then President Estrada issued Executive Order 195 dated December 31, 1999 directing all
government-owned and controlled corporations under the HUDCC and the Presidential Commission
on Mass Housing (PCHM) to prepare their respective Rationalizing and Streamlining Plans. The E.O
also mandated to re-direct NHMFC operations to the development and provision of a secondary
mortgage market to finance mortgage take-out and fast track the disposition of existing mortgages.
The E. O. provided the President policy direction with respect to NHMFC.
In the 1st quarter of 2002, as part of an overall rehab program, NHMFC hired Punongbayan &
Araullo/Ernst & Young (P&A/E&Y) as its Financial Advisor. In the last quarter of the same year, the
Corporation undertook a Restructuring Agreement with the Funders (SSS & HDMF) and started the
processing for the Sale of the Non Performing Loans (NPLs) of the UHLP portfolio.
After pre-qualifying potential bidders in 2003, NHMFC announced the competitive auction sale of the
NPLs after pre-qualifying potential bidders. This sale is part of a strategy that will reposition the
Corporation to meet the future affordable housing needs of the Filipino people. This realignment
process actually started during the second quarter of 2002 with the direct involvement of
Management of NHMFC, SSS, HDMF, HUDCC & the DOF.
NHMFC realignment included the formal restructuring of its P46 B outstanding debt balance that
includes SSS and HDMF and obtaining approval from all the required government bodies to
implement its plan to dispose of the portfolio of delinquent loans. This complex approval process
required a consensus among all the parties and took more than one year to achieve.
In June 20, 2004, Executive Order 272 authorized the creation of the Social Housing Finance
Corporation, a subsidiary of NHMFC. In June 21, 2005, SHFC was entrusted with the Community
Mortgage Program (CMP) and its amortization, as well as the developmental component of the AbotKaya Pabahay Fund (AKPF) Program of NHMFC. They have also assumed the implementation of
the AKPF and CMP upon the mandate to be leading government agency to undertake social housing
programs for the low-income earners. For more than 17 years, AKPF and CMP has become the
most affordable-long term micro finance facility that meets land tenure and housing security
requirements of the "poorest of the poor". It is recognized as the most successful housing program
for the homeless and the underprivileged sector of our society.
In September 2006, the outcome of the CMP and AKPF programs of SHFC and the sale of its Nonperforming Loans (NPLs) to Balikatan Housing Finance encouraged the corporation the process of
rationalization of its manpower structure. The Plan for Reorganization was approved by DBM and
CSC in November of 2006 and was implemented and completed in June of 2007. The new structure
helped downsized its functions to collection and CMP programs instead of focusing on the
establishment of a Secondary Mortgage Institution.
In August 2007, Ernst & Young Transaction Advisory Services Inc. was became the Financial
Advisor that assisted in the maiden securitization of the corporation and lay the building blocks for

the transformation of NHMFC into an SMI. EY TASI conducted due diligence on the low delinquent
accounts of NHMFC and assisted the corporation in matters of finance, accounting, regulatory and
legal implications of the securitization transaction.
In August 2008, NHMFC brought on board the securitization expertise of Standard Chartered bank
as underwriter and Lead arranger for the maiden securitization issue, along with the Trustee and
Special Purpose Trust, namely, DBP and PNB respectively.
In March 23, 2009, the NHMFC launched the maiden securitization issue of the 2.06 Billion Bahay
Bonds. This is the first residential mortgage backed securities (RBMS) issued in the Philippines by a
government agency. The Bahay Bonds Maiden Issue took place at the height of the global economic
crisis that was brought about by sub-primed mortgages. This was rated AA by the Philippine Rating
Services Corporation (PhilRatings). Bahay Bonds become oversubscribed twice because of this the
corporation was recognized by Asset Asian Awards 2009 and was awarded the Triple A Award
category 2009 Securitization of the Year.
In November 19, 2009, the Board approved the proposed Guidelines on the Housing Loan
Receivable Purchase Program (HLRPP) that granted authority for the NHMFC President to approve
all purchases under the HLRPP. The new guideline allowed the purchase of housing loan
receivables from the originating institutions and will be turned into an asset pool for eventual
issuance of securities or bonds for sale in the capital market. With this program, the NHMFC will
continue to perform its mandate as a Secondary Mortgage Institution (SMI) to operate a viable
housing finance system thru the securitization of the residential home mortgages.
In August 2012, NHMFC issued the second of its Bahay Bonds series (BB2). It is the first ever retail
mortgage-backed securities (RMBS) issued in the country and was given a conditional rating of PRS
Aa by the PhilRatings. The following year, NHMFC was awarded by the Philippine Dealing System
Holdings Corporation & Subsidiaries (PDS Group) with the Innovative Listed Corporate Bond Issue
of the Year for the pioneer issuance of BB2 Special Purpose Trust.
In March 2013, the NHMFC was awarded ISO 9001:2008 for the Rizal Division after audit stages
conducted by Tv Sd PSB Philippines. In 2014, NHMFC has expanded ISO certification for the
Borrower Counseling System of the Rizal, NCR and Luzon Division, Extra-judicial foreclosure
process (Buyer-Initiated) of the Litigation Division and Release of Title process of the Securities and
Mortgage Custodianship Division.

II.

Head Office

Filomena Bldg. III 104 Amorsolo St. Legaspi Village Makati City
Public Assistance : 892-5243

HLRPP & Bahay Bonds inquiries : 892-5503

Other inquiries : 893-1581

III.

Corporate Goals and Objectives

Provide liquidity to the housing sector through securitization of mortgages/assets.

Promote stability to the housing finance housing finance system through participation in the
capital market.
Establish an efficient and effective organization with a professional workforce utilizing best
practices.
Maintain efficiency in operation and efficacy in financial management to ensure sustainability
of its programs.
Manage its subsidiaries efficiently and effectively.

IV.

Core Values

V.

Organizational Structure

NHMFC shall at all times be accountable to the people and shall discharge its mandate with utmost responsibility, inte

VI.

The President

FELIXBERTO BUSTOS, DBA, CFA, FRM

Seasoned finance professional, with over 25 years experience

regulated industries. A banking executive, who pioneered
technical innovations that were institutionalized industrywideas the ATM, integrated voice and data networks, and
international remittance systems. An academic, who
introduced the globally recognized CFA and FRM
designations throughout the country. Recognized globally
as a finance and risk management resource.

in
such

CURRENT PROFESSIONAL RESPONSIBILITIES

Independent Board Director (from June 2009) Philippine Electricity Market
Corporation (PEMC) Pasig City, Philippines
The primary purpose of the PEMC is to establish, maintain, operate and govern an
efficient, competitive, transparent and reliable market for the wholesale purchase of
electricity and ancillary services in the Philippines.
PEM Auditor and Chairman, PEMC Audit Committee (from June 2007) and
Chair, Board Audit Committee (from February 2010)
The PEM Auditor is responsible for the operational audits of the spot market and of
the Market Operator. The Board Audit Committee is responsible for the corporate
audit (including financial audits, review of internal control, risk management and
corporate government) of PEMC.
Managing Director Credit Rating and Investors Service Philippines, Inc.
(CRISP), from May 2008 Makati City, Philippines)
CRISP provides credit rating services to domestic and international investors in the
Philippines. CRISP is driven by industry expertise and professional background of its
principals. CRISP uses a rating approach that incorporates international criteria
while giving full account to local market forces.

VII. Functional Description

OFFICE OF THE CORPORATE SECRETARY

Serves as the legal Counsel of the Corporation and provides secretariat services to Board meetings
and the furnishings copies thereof to the Chairman and members of the Board.
INTERNAL AUDIT DEPARTMENT

Develops, monitors, evaluates and appraises corporate internal control system concerning
organizational structure, operational procedures, records and standards of performance to ensure an
orderly, efficient and effective conduct of business and operations of NHMFC.
OFFICE OF THE PRESIDENT

Performs the general policy and strategic decision-making functions of the Corporation and the
provision of directions that will guide NHMFC's day to day operations. The functions included under
the Office of the President are media services that will serve as public relations and information arm
of the Corporation, and the special projects office in-charge of the implementation of the Social
Housing Development Loan Program (SHDLP).
The Office of the President shall have under its direct supervision and control the Office of the
Executive Information Systems Department, Collection and Accounts Management Group.
A. OFFICE OF THE EXECUTIVE VICE-PRESIDENT
Assists the President and plans, directs, organizes, oversees and coordinates the entire operations
of the NHMFC in accordance with board directives, presidential instruction, corporate charter and
NHMFC mandate under the Housing and Urban Development Coordinating Council. Oversees the
operations of the Corporation and ensures the establishment of systems, policies and procedures
with effective and efficient internal control mechanisms to operate the activities of the office.
B. CORPORATE PLANNING DIVISION
Designs, develops and implements the corporate planning system and monitors the accomplishment
of the company plans and programs.
The Department shall also be in-charge of system design, programming and EDP operations. It shall
undertake the formulation and evaluation of the Corporate Management Information System (MIS)
plans and programs, the design and development of computer systems and the manualization of
such procedures and the monitoring and upkeep of the performance of these systems.
B1. INFORMATION SYSTEMS AND TECHNICAL SUPPORT DIVISION
Undertakes the design and development of computerized systems and its related manual support
systems; oversees the actual implementation of developed computer systems with corporate-wide
involvement; and the monitoring and upkeep of the performance of these systems.
Manages database, installation of software, computer and network resources. Ensures that
NHMFC's computer system should be up and running to support other user groups and/or
departments, and maintain optimum use of the resources available in the data center.

B2. ELECTRONIC DATA PROCESSING DIVISION

Implements the computer systems of the Corporation's operations in accordance with set
policies/guidelines and ensures the smooth flow of information between management and its clients
through the maintenance of such systems. The Division also handles the posting of loan payments of
borrowers who availed of various loan updating programs of the Corporation.
C. COLLECTION AND ACCOUNTS MANAGEMENT GROUP
Implements approved policies, guidelines, standards and procedures pertinent to the effective and
proper monitoring, servicing/collection of amortizations of borrowers of NHMFC's lending programs
(e.g. UHLP, FOLIO I, PEA); closely coordinates with borrowers and other concerned institutions
specially on the classification of accounts such as items-in-litigation and in the foreclosure/sale of
said accounts; continuously reviews the collection and account servicing operation system and
recommends modification strategies to improve public service and collection performance/efficiency
rate.
C1. INSURANCE OFFICE
Determines all qualified mortgagors to be properly covered by Mortgage Redemption Insurance
(MRI) and their mortgage collaterals, including those owned by the Corporation, to be adequately
covered by Fire and Allied Perils Insurance (FAPI) and that all MRI and FAPI claims filed are
immediately settled by the Insurers.
C2. CENTRAL OFFICE COLLECTION MANAGEMENT DEPARTMENT
Responsible for the monitoring, servicing and collection of all loan accounts located in the National
Capital Region, Cavite, Laguna, Rizal and other areas of Region IV-A and IV-B. This is in
coordination with concerned NHMFC offices and/or collecting accounting banks accredited by the
Corporation. The Department prepares and maintains complete borrower loan information in manual
or computerized forms as back-up system/reference for examination and evaluation of work relative
to originating institutions and/or collecting banks.
Processes, evaluates and verifies accounts requested for updating/restructuring, assumption or
conversion of mortgages and full payment.
C.2.1 NCR DIVISION
Responsible for the monitoring, servicing and initiating the collection of all loan accounts located in
the National Capital Region.
C.2.2 RIZAL DIVISION

Responsible for the monitoring, servicing and initiating the collection for all loan accounts located in
the province of Rizal and cities in the area.
C.2.3 LAGUNA DIVISION
Responsible for the monitoring, servicing and initiating the collection of all loan accounts located in
the province of Laguna and cities in the area.
C.2.4 CAVITE DIVISION
Responsible for the monitoring, servicing and initiating the collection of all loan accounts located in
the province of Cavite and cities in the area.
D. REGIONAL ACCOUNTS SERVICING DEPARTMENT
Responsible for the monitoring, servicing and initiating the collection of all loan accounts at regional
level or those not serviced by the Central Office Collection Management Department. This is in
coordination with NHMFC accredited originating institutions/associations and collecting banks. It also
prepares and maintains complete and updated borrower's loan folio in the regional offices. It also
processes, evaluates and verifies account requests for restructuring, assumption or conversion of
mortgages and full payment.
D1. LUZON ACCOUNTS SERVICING DIVISION (Regions I, II, III and NCR)
Responsible for monitoring, servicing and initiating the collection of all loan accounts located in the
Luzon region specifically Regions I, II, III and the Cordillera Administrative Region. This is in
coordination with NHMFC accredited originating institutions/associations or collecting banks in that
area. It also prepares and maintains complete and updated borrowers loan folio in the regional
offices. It also processes, evaluates and verifies accounts requested for restructuring, assumption or
conversion of mortgages and full payment.
D2. VISAYAS ACCOUNTS SERVICING DIVISION
Responsible for monitoring, servicing and initiating the collection of all loan accounts located in the
Visayas region (Regions VI, VII and VIII). This is in coordination with NHMFC accredited originating
institutions/associations or collecting banks in that area. It also prepares and maintains complete and
updated borrower's loan folio in the regional offices. It also processes, evaluates and verifies
accounts requested for restructuring, assumption or conversion of mortgages and full payment.
D3. MINDANAO ACCOUNTS SERVICING DIVISION
Responsible for monitoring, servicing and initiating the collection of all accounts located in the
Mindanao region (Regions IX, X, XI, XII, ARMM and CARAGA). This is in coordination with NHMFC

accredited originating institutions/associations and collecting banks in the area. It also prepares and
maintains complete and updated borrower's loan folio in the regional offices. It also processes,
evaluates and verifies account requests for restructuring, assumption or conversion or mortgages
and full payment.
CORPORATE SUPPORT SERVICES GROUP
Plans, directs and coordinates corporate programs and thrusts that are subjected to the immediate
authority of the President. It shall ensure the efficient and effective implementation of policies, plans
and programs of the Corporation through the Legal Department and Administrative and Finance
Department.
A. LEGAL DEPARTMENT
Provides overall legal services in the form of operational and development counseling which includes
evaluation and preparation of mortgage documentations for purchase/takeout; formulation and
drafting of contracts in the which the Corporation is part of the party as well as the standard legal
documentation needed for the establishment of the services such as legal researches and studies,
legal opinions and counseling on the various aspects of its operational and developmental function.
Handles all the litigation of cases filed for and against NHMFC including foreclosure proceedings and
the management and disposal of properties acquired by the Corporation incident to its express
powers.
Provides legal policies, guidelines, standards and procedures on the effective and proper
monitoring/servicing/collection of amortizations of all Acquired Asset Division accounts.
A.1. LITIGATION DIVISION
Handles all litigation and prosecution of cases filed for or against the Corporation and attends all
court, quasi-judicial , administrative cases, investigation and foreclosure proceedings.
A.2. LEGAL SERVICES AND COUNSELING DIVISION
Provides legal services in the form of legal opinion and counseling researches and studies
appropriate documentation and ensures that all corporate acts and deeds are in accordance with
law. Formulates and implements corporate documents consistent with policy changes; prepares and
reviews documents which include operational requirements.
A.3. ACQUIRED ASSETS DIVISION
Administers, maintains, and manages the disposition of properties acquired by the Corporation via
foreclosure proceedings, dacion en pago, and other modes of property acquisition.

B. ADMINISTRATIVE AND FINANCE DEPARTMENT

Provides overall administrative and financial services to support corporate operations. The
Department shall undertake the development and administration of an internally consistent and
externally competitive staffing pattern and package compensation consistent with existing laws, as
well as the comprehensive staff development program. Administers the centralized records
management system and the Corporation's general service requirements.
Provides an efficient and effective accounting services for NHMFC and implements the appropriate
financial control and review system involving corporate accounts. It also develops and implements
pre-audit and review system of all disbursements to ensure compliance with existing laws, rules and
regulations; maintains a complete record of bank remittances or payments of borrower's accounts,
including reconciliation of all accounts; and installs and implements an efficient and effective budget
management, monitoring and control system including verification of financial transactions.
Likewise this Department shall be responsible for the optimum cash receipt and disbursement of
NHMFC's funds in accordance with corporate policies and targets. Monitors cash transactions and
collection from accredited banks employers.
B.1. HUMAN RESOURCE MANAGEMENT DIVISION
Provides the Corporation with adequate, efficient, competent and well-motivated workforce through
training and development and the establishment of the necessary machinery for fulfilling the NHMFC
manpower requirements. It shall also provide for the conduct of programs and studies for the
continuous improvement of existing systems and procedures and approaches to human resource
planning and development. Finally, it shall also be in charge of the administration of personnel
appointments/movements, and processing of employee claims and benefits.
B.2. GENERAL SERVICES DIVISION
Ensures the efficient and effective administration of support services and provision of adequate
facilities, timely procurement of supplies, materials and equipment requirements of the various
NHMFC offices. In-charge of the maintenance and control of the central library and record and
reference section of the office including the provision of mailing services for all NHMFC units.
B.3. CONTROLERSHIP AND BUDGET DIVISION
Implements the financial control system mechanism on administrative and operational expenses and
ensure that such expenditures are within prescribed policies, laws, rules and regulations.
Installs and implements an effective and effective budget management, monitoring and control
system including verification of financial transactions of the Corporation.

B.4. GENERAL ACCOUNTING DIVISION

Provides efficient and effective general accounting services involving Corporate accounts through
the systematic recording of financial transactions, maintenance of general ledger and preparation of
related financial reports. Periodically reviews and evaluates the present accounting system to
determine further improvements to make the system more responsive to the needs of the
Corporation.
B.5. CASH DIVISION
Formulates and implements systems and procedures to ensure effective management, banking,
control and recording of collections received over the counter or through field collections as well as
the disbursement of corporate funds in accordance with set government rules and procedures,
geared towards corporate targets.
SECURITIZATION GROUP
Initiates, formulates and implements policies and procedures that will govern the operation of an
effective and efficient securities market. IT develops/adopts loan guidelines that helps asset
originators determine whether a borrower has the ability to repay the debt, and the property is
sufficient security for the mortgage to ensure that the loan or debt qualifies to be securitized.
Provides all integral tasks involving the implementation and administration of policies and guidelines
related to booking, processing, pricing, securities monitoring and marketing to channel funds from
the capital market to loan or mortgage originators and investors. It assists rating companies while
investors assess and analyze the asset pool/securities and relate the same to the borrower's income,
asset, liabilities, and net worth to guarantee periodic repayment of the loan security loan. It draws
comparative ratios acceptable to the investment playing field of an investor and ensures a constant
supply of funds for both lenders and borrowers and vice-versa. It ensures the structure of the quality
control system to suit the requirements of securitizing program.
Formulates and implements policies and guidelines to establish liquidity support mechanisms that
will enable investors to liquefy their investment before its maturity. It shall render assistance in
implementing systems and mechanisms of liquefaction by the investors. It shall ensure constant flow
of funds available to the lenders and investors in the event of shortfall of funds from collections.
Undertakes the timely and periodic reportorial requirements on the operations of the securitization
program. It shall coordinate with the different government agencies especially the Department of
Finance, Department of Budget and Management, Securities and Exchange Commission Bureau of
Internal Revenue and Bangko Sentral ng Pilipinas on matters related to the Corporation's
compliance to existing rules and regulations pertinent to its performance and operations.

Responsible for the promotion and adoption of marketing strategies to encourage prospective
investors to purchase the instrument to be issued. Undertakes activities such as the designing and
packaging features and defining of the terms and conditions of the instrument to be more competitive
with other investments in the market.
A. MORTAGE, ACCREDITATION, POOLING AND RATING
Formulates policies, guidelines and procedures that will govern the creation of a pool of loans or
mortgages based on prescribed security structure and rating criteria. It shall be responsible for
analyzing and classifying the characteristics of seasoned and qualified loans or mortgages that
would constitute a pool for the issuance of an asset-backed security certificate. It shall also define
the criteria of rating the pool as means of emphasizing the options or risks and provide a comfort
level to the investors. Whenever necessary, coordinate with the rating agencies engaged by the
corporation for the desired structure of the pool of assets or mortgages to be securitized. Initiates
and formulates all policies, guidelines and procedures required in the accreditation of banks and
other financial institutions.
A.1. ACCREDITATION AND RATING DIVISION
Ensures that policies, guidelines and procedures in accrediting banks and developer/financial
institutions as originators of seasoned loans are observed and properly implemented. Also ensures
that deviation that may arise in the implementation of policies, guidelines and procedures are
addressed judiciously and efficiently through appropriate corrective measures.
Identifies and defines the factors that comprise the rating criteria to be applied to the pool and assets
or mortgages it contains. Establishes and determines the yield and pass through rates to minimize
credit and interest rate risks. Whenever necessary assists in the preparation of borrower's credit
documentation and property evaluation and appraisal forms and include the desired rates to facilitate
evaluation of the pool by the prospective investors. It shall also identify the risks factors that could
materially affect issuance of a specific debt instrument. Renders assistance to the rating agencies
engaged by the corporation.
A.2. POOLING AND ANALYSIS DIVISION
Conducts research about pooling and analysis of loans or mortgages based on domestic and
international standards to attract investors to purchase the security paper issued by the corporation.
The Division is also responsible in analyzing and classifying the characteristics of the responsible
and qualified loans or mortgage contained in the pool based such as the character, capacity to pay,
the collateral, credit standing of the borrower and integrity of the originator.
Also undertakes research studies that will enable the pooled loans to be attractive to the investors
using credit standards prevailing in the market. Evaluates the quality of property appraisal and
determines the collection efficiency of each used as collateral to the instrument issued.

A.3. COLLATERAL AND APPRAISAL DIVISION

In-charge of the over-all validation of the appraised value of the collaterals as presented by the
originator in the determination of loan to value ratio. It conducts inspection to determine the location
and geographic dispersion of the collaterals that comprise the pool of assets or mortgages. It
ensures that the collateral composition of the pool demonstrate a high level of security margin
against the negotiable instrument issued. Establishes a systematic approach in gathering information
about property evaluation and location to serve the needs of the management and investors.
B. MARKETING DEPARTMENT
Formulates policies, guidelines and procedures in marketing the asset-backed securities of the
Corporation to attract investors. Determines investors' investment criteria and establishes an array of
information about the security instruments issued in the market and identify investor preferences to a
particular instrument. Identifies the economic forces that have an impact on the security issuance. It
shall conduct evaluation and assessment to enhance the marketability of the asset-backed security
to be issued.
Formulates and prepares a comprehensive marketing plan and promotion strategy, implements and
monitors both the plan and the strategy to ensure the disposition and sale of the asset-backed
security in the domestic/international, retail/institutional market.
B.1. PROCESSING AND PRICING DIVISION
Establishes, formulates, implements, supervises and monitors the pricing policy affecting debt
instrument issuance. Defines the pricing terminologies to educate the parties involved in the assetbacked security operations. It shall establish the policies governing the pricing to encourage
originators to actively participate in the securitization program. It shall also define, formulate policies
and guidelines including the computation of costs and yields affecting the issuance of the assetbacked security. It shall assist in determining the acceptable origination fees, servicing fees, discount
rates, and other benefits related to the delivery of assets or pooling of the same taking into
consideration the costs and administrative expenses leading to the eventual sale of the instrument to
the investor.
B.2. PRODUCT DOCUMENTATION AND MARKETING DIVISION
Formulates, implements, supervises and monitors comprehensive promotion strategies to realize a
sale of the asset-backed instruments to the investors. Prepares promotional materials, prospectus,
and information campaigns on the asset-backed instruments to be issued. Prepares prospectus and
information campaign materials for the borrowers and originators as pre-qualification guidelines to
pooling. Consolidates and compiles materials about the information on the composition of the pool
including identity of the borrower, quality and value of the collateral for the purposes in order to
motivate prospective investors to purchase the instrument.

C. SECURITIES AND LIQUIDITY SUPPORT DEPARTMENT

Conducts the formulation, design and implementation of policies, guidelines and procedures that will
govern the security support services and liquidity mechanism of the securitization program.
Undertakes research activities and prepares the data for the guidance of the Management in making
decisions and approving transactions that enable investors liquefy or rediscount their asset backed
security instrument. Maintains an extensive data base that serves as backroom support of the
unissued and issued instruments such as maintenance of securities and transfer book, design and
printing of securities, monitoring and control of accountable forms and documents. In case some
support services such as underwriting, account servicing, trusteeship have been contracted out of
outsourced, the Department will maintain close coordination and monitoring with these agencies to
ensure the compliance to existing rules, laws and regulations governing the operations of
securitization.
C.1. LIQUIDITY SUPPORT DIVISION
Implements approved policies, guidelines and procedures of monitoring liquidity position of the
securitization program. Assists, formulates amendments to policies, guidelines and procedures as a
result of thorough evaluation of existing procedures to enhance the monitoring system. Employ a
system that will monitor pre-termination of default to the borrowers that will have an effect with the
projected cash flows. Prepares cash flow projections in anticipation of rediscounting of asset-backed
security issued. Coordinates with appropriate group or departments to actual remittance to the
account of NHMFC as inputs to cash-inflows. Prepares projected cash outflows of possible reduction
of expected collections due to non-regularity of payments by the borrower. Establishes strong
coordination among the parties involved in the operations of the securitization program, especially
the servicer, guarantor, trustee, Department of Budget and Management, Bureau of the Treasury to
ensure timely release of funds allotted for securitization.
C.2. SECURITIES MONITORING AND COMPLIANCE DIVISION
Serves as backroom support of mortgage trading by providing documentation of all transactions,
maintenance of securities and transfer book, design and printing of securities, monitoring control of
accountable forms and documents. Prepares performance and monitoring reports for the
consumption of government instrumentalities and other concerned parties. Collate documents, rules
and regulations governing securitization and ensure compliance of the same by the concerned
departments, division or groups.
D. TREASURY DEPARTMENT
Responsible for the formulation and implementation of policies, system and procedures on the
receipt banking, custody and disbursement of cash, ensures post market servicing of securities,
undertake short-term fund sourcing and the management of investment and excess funds. It shall
also be in charge of the processing and documentation of Corporate sourcing products.

D.1. SECURITIES AND MORTGAGE CUSTODIANSHIP DIVISION

Formulates and implements systems and procedures in the safekeeping and control of all
documents and other accountable forms pertaining to the securitization program of the Corporation.
Establishes and implements the control and monitoring system for the unissued and issued
instruments.
D.2. INVESTMENT AND LIQUIDITY MANAGEMENT DIVISION
Implements policies develop systems and programs for the investment of corporate funds, receipts
from amortization collections, trading and servicing of corporate securities, management of debt
instruments and scheduling of cash allocations, monitoring and management of corporate funds.
D.3. CASH MANAGEMENT DIVISION
It shall be responsible in the installation of cash management system that ensures an effective and
efficient cycle of funds from investors. In-charge in the implementation of procedures and guidelines
related to the receipt of proceeds of sold instruments and the documentation of the same. Defines
and designs the system of distributing the proceeds of the sold instruments.

VIII.

Projects for 2015