Housing Loan Receivables Purchase Program Overview
"Learn about NHMFC's Housing Loan Receivables Purchase Program (HLRPP) presented to the Rural Bankers Association of the Philippines. The program aims to provide liquidity for housing originators by purchasing housing loan receivables with real estate collateral. Explore the qualified loan types, purchase process, interest rates, due diligence, equity requirements, and other provisions of the program. Find out how this program benefits the housing finance sector. Date of presentation: January 17, 2014."
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presentation to the Rural bankers association of the Philippines (RBAP) - HOUSING LOAN RECEIVABLES PURCHASE program (HLRPP) PRESENTATION TO THE RURAL BANKERS ASSOCIATION OF THE PHILIPPINES (RBAP) - HOUSING LOAN RECEIVABLES PURCHASE PROGRAM (HLRPP) January 17, 2014
HOUSING LOAN RECEIVABLES PURCHASE PROGRAM (HLRPP) NHMFC is buying housing loan receivables with residential house and lot or condominium unit as collateral for securitization
HOUSING LOAN RECEIVABLES PURCHASE PROGRAM Purpose: to provide liquidity to housing originators to build asset pool for securitization
A. TYPES OF LOANS QUALIFIED FOR PURCHASE 1. Real Estate Mortgage (REM) 2. Contract-to-Sell (CTS) B. PURCHASE PRICE OF THE LOAN RECEIVABLE Take out amount is the Outstanding Principal Balance (OPB) as of cut-off date.
FEATURES A. INTEREST RATES (FIXED) PHP 1.0M and below OVER PHP 1.0M B. LOAN TERM not more than 25 years C. DUE DILIGENCE -ASSET -BORROWER (INTERVIEW & REVIEW OF LEDGERS) -LOAN DOCUMENTS -ORIGINATOR (FINANCIAL CONDITION / COMPANY PROFILE) - 8% P.A. (fixed) - 10% P.A. (fixed)
D. EQUITY AND SEASONING PERIOD DOWNPAYMENT/EQUITY SEASONING PERIOD HOUSE AND LOT (CTS/REM) Fully paid of not less than 20% of total contract price (6) consecutive monthly Amortizations Fully paid of not less than 10% of total contract price (12) consecutive monthly Amortization LOAN TO VALUE RATIOS DP OF 20%, LTV NOT MORE THAN 80% DP OF 10%, LTV NOT MORE THAN 90%
E. OTHER PROVISIONS CTS with remaining term of over five (5) years shall be converted to REM within 2 years from date of take out.; 10% hold-out based on Original Contract Price to guarantee the conversion of accounts from CTS to REM; Submission of PDCs from the buyer/borrower until the account is fully paid; Letter of Guaranty For defaulting accounts: 2% increase in interest rate p.a. applied on the principal portion of the arrears
PROCESS FLOW: 1. Conduct Due 1. Conduct Due Diligence on Loan Diligence on Loan Portfolio and Originator Portfolio and Originator 3. 3. Process Process Voucher for Voucher for Payment Payment (take (take- -out, 11 working 11 working days) days) 2. 2. Consolidate Consolidate Reports and Reports and Present to Present to Credit Credit Committee for Committee for Approval. Approval. - Site Inspection/ Appraisal Site Inspection/ Appraisal - - Title Verification Title Verification out, - - Examination of Ledgers Examination of Ledgers - - Borrower Interview Borrower Interview - - Review of Legal Review of Legal Documents Documents Download Loan Documents at www.nhmfc.gov.ph
SIGNIFICANT FEATURES FIXED INTEREST RATES, NO REPRICING FIXED TERM NO MEMBERSHIP REQUIREMENT
UPDATES ON THE PROGRAM DEFAULTING ACCOUNTS : 2% INCREASE IN INTEREST RATE - PRINCIPAL PORTION OF ARREARS 25 PDCs FROM BORROWERS ORIGINATOR & BORROWER MUST USE NHMFC TEMPLATES FOR FAST REVIEW OF LOAN DOCUMENTS
SAMPLE AMORTIZATION (PRINCIPAL & INTEREST) PHP1.0 M @8% PER ANNUM TERM: 5 YRS 10 YRS 15 YRS 20 YRS 25 YRS = PHP20,276.39 = PHP12,132.76 = PHP9,556.52 = PHP8,364.40 = PHP7,718.16
SAMPLE AMORTIZATION (PRINCIPAL & INTEREST) PHP1.5 M @10% PER ANNUM TERM: 5 YRS 10 YRS = 15 YRS = 20 YRS = 25 YRS = = PHP31,870.50 PHP19,822.65 PHP16,119.15 PHP14,475.30 PHP13,630.50
SAMPLE AMORTIZATION (PRINCIPAL & INTEREST) PHP2.0 M @10% PER ANNUM TERM: 5 YRS 10 YRS = 15 YRS = 20 YRS = 25 YRS = = PHP42,494.09 PHP26,430.15 PHP21,492.10 PHP19,300.43 PHP18,174.01
SAMPLE AMORTIZATION (PRINCIPAL & INTEREST) PHP3.0 M @10% PER ANNUM TERM: 5 YRS 10 YRS = 15 YRS = 20 YRS = 25 YRS = = PHP63,741.13 PHP39,645.22 PHP32,238.15 PHP28,950.65 PHP27,261.02
AMORTIZATION FACTOR YEARS 8% P.A. 10% P.A. 5 0.0202764 10 0.0121328 15 0.0095565 20 0.0083644 25 0.0077182 0.0212470 0.0132151 0.0107461 0.0096502 0.0090870
We are now ready to answer your questions. Thank You! Contact us at: 892-5925 (Marketing Dept.) 893-0491 (Mortgage Pooling Dept.) Or visit our website: www.nhmfc.gov.ph
