NHMFC marks securitization milestone with RMBS issuance

MANILA, Philippines — The National Home Mortgage Finance Corp. (NHMFC) marked another milestone in Philippine housing finance with the signing of the NHMFC Bonds 8th Residential Mortgage-Backed Securities (RMBS) issuance, valued at approximately P1.465 billion last Sept. 30, at the Raffles Hotel in Makati.

Backed by a select pool of 2,115 long-term secured residential loans consisting of low-cost and socialized housing units, the issuance underscores NHMFC’s continuing efforts to strengthen the country’s secondary mortgage market.

Through securitization, NHMFC generates fresh liquidity for the housing finance system, mobilizes long-term capital and supports the government’s efforts to address the country’s housing needs.

“Building on the success of our previous issuances, this offering marks another important step in strengthening the role of the secondary mortgage market in Philippine housing finance,” NHMFC president Renato Tobias said.

“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,” he added.

NHMFC’s partner institutions in this securitization offering are the Development Bank of the Philippines-Trust Banking Group as the Special Purpose Trust Administrator, Land Bank of the Philippines-Investment Banking Group as the Arranger and Underwriter, Philippine National Bank-Trust Banking Group as the Trustee, Registrar and Paying Agent, Moore Roxas Tabamo & Co. as the Portfolio Auditor, PhilRatings as the Rating Agency, and MOSVELDTT Law Offices as the Transaction Counsel and Tax Advisor.

Camilo Sanchez, DBP-TBG vice president and trust officer, recognized NHMFC’s efforts toward securing the relevant tax exemption for securities backed by low-cost and socialized housing loan receivables.

Jerry Coloma III of MOLVELDTT Law Offices, meanwhile, underscored the broader social impact of NHMFC’s securitization and its role in expanding access to housing finance.

“As lawyers, our contribution is often made through drafting documents, providing advice and resolving legally technical questions. Here, we can see how that contribution serves a real and practical human need. 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.

“I truly believe that the securitization work we perform changes the trajectory of the life of Filipino families. It makes a profound and positive difference in their lives. That is the kind of work we want our practice (as lawyers) to be part of. The scale of the need remains considerable. NHMFC’s continuing securitization program has an important contribution to make in that effort,” he said.

Delegates from the Korea Housing-Finance Corp. led by Jong Hyun Han were also present and likewise shared insights regarding housing and finance operations in South Korea.

The signing ceremony reinforces the shared commitment of NHMFC and its partner organizations to link housing finance with the capital market and support the government’s housing initiatives.