OFFICE OF THE PRESIDENT • REPUBLIC OF THE PHILIPPINES
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HGC- Housing Finance Matchmaker

The Home Guaranty Corporation (HGC) is launching a nationwide program to boost lending by banks and borrowings by developers and home buyers. Dubbed “BBB+B” (Bankers-Builders-Buyers), the program aims to create a pool of banks to lend developmental loans to home builders for sale to qualified buyers. This will realign Banks, Builders and Buyers in a Housing Circle fully complementing each others’ functions and needs.

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The “BBB+B” program is in response to Vice President and Housing and Urban Development Coordinating Council (HUDCC) Chairman Jejomar C. Binay’s directive to key shelter agencies to formulate innovative strategies to address the nation’s housing backlog.

HGC President Atty. Manuel R. Sanchez declared that the BBB+B program is part of HGC’s mandate of mobilizing private funds for housing and promoting easier access to housing finance. Banks and other financial institutions, by the nature of the business are averse to risk. HGC provides the unconditional guaranty of the Republic of the Philippines on housing loans extended by banks—making their loans risk-free. Most of the country’s established banks are already availing of HGC guaranty. In 2011, HGC guaranteed P37.89B worth of housing loans from banks enrolled in HGC Guaranty Programs.

According to Sanchez, “we have eliminated credit risks of housing loans extended by banks” and “through BBB+B, we will encourage more banks to avail of HGC guaranty to lend more for housing. We will match the loans with builders and buyers.” HGC grants guaranty coverage on loans extended by banks to developers for their working capital, home construction and marketing needs. Through BBB+B, developers are further encouraged to bring prospective buyers to banks to avail of HGC-guaranteed retail accounts. HGC will soon sign MOAs with builders, realtors and brokers’ groups to complete the Housing Circle.

HGC’s BBB+B Program will bring this new concept of housing finance and lending to the provinces and the countryside. Aside from targeting provincial branches of established commercial and universal banks, HGC also provides guaranty lines to rural banks, thrift banks, building and loan associations, and even microfinancing. For 2012, HGC targets marketing its guaranty to over 400 such institutions nationwide.

HGC will popularize home buying through the Housing Circle.

Homeownership starts with pointing prospective home buyers to the right direction where to find affordable housing and where to find banks to finance their house purchase. Information and credit education are key components of the BBB+B program. Through the online BBB+B database, currently being developed, prospective home buyers can readily access information on the nearest housing developments and HGC-guaranteed source of home financing. Whenever possible, forms, loan requirements and other related information will also be made available online.

“BBB+B aims to help home buyers overcome their natural aversion to bank borrowing due to the false belief that they will never qualify for a housing loan” Sanchez said. “We are also teaching them to self-qualify for housing loans and plan for home ownership.” The BBB+B program is anchored on VP and HUDCC Chairman Jejomar C. Binay’s advocacy of “Mas gaganda ang buhay, kung may sariling bahay.”

 

The Home Guaranty Corporation Mandate

The Home Guaranty Corporation (HGC) is a government-owned and controlled corporation under the administrative supervision of the Housing and Urban Development Coordinating Council (HUDCC) currently chaired by the Honorable Vice President Jejomar C. Binay

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HGC's mandate are:
Under Republic Act No. 8763 (Home Guaranty Corporation Act of 2000)

  1. To guarantee the payment of any and all forms of mortgages, loans and other forms of credit facilities and receivables arising from financial contracts exclusively for residential purposes and the necessary support facilities;
  2. To assist private developers to undertake socialized, low and medium-cost mass housing projects by encouraging private funds to finance such housing projects through a viable system of long-term mortgages, guarantees and other incentives;
  3. To promote homebuilding and landownership, giving primary preference to the homeless and underprivileged sectors of the society;
  4. To promote housing by the aided self-help method; and
  5. to pursue the development and sustainability of a secondary mortgage market for housing.

    Under Republic Act No. 6846 (Abot-Kaya Pabahay Fund Act)
  6. To administer the Cash Flow Guaranty component of the Abot-Kaya Pabahay Fund (AKPF).
The AKPF is a guaranty facility exclusively covering socialized housing loans extended by the Home Development Mutual Fund (HDMF) or Pag-ibig Fund, Government Service and Insurance System (GSIS), the Social Security System (SSS) and their Registered financial institutions.

 

HGC Launches Moratorium Program for Typhoon Gener and ‘Habagat’ Victims

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August 10, 2012—Home Guaranty Corporation (HGC) President Atty. Manuel R. Sanchez announced the suspension of collection of monthly amortization from buyers of HGC-acquired assets in areas affected by Typhoon Gener and Habagat-caused flooding. The moratorium program applies to monthly amortization due on housing loans, both principal and interest, and monthly lease/rentals on contracts of lease with option to purchase and similar contracts. Updated buyers may not pay monthly amortizations, without penalty for three (3) months, from August 6, 2011 to November 5, 2012.

Likewise, foreclosure/cancellation of delinquent accounts in Typhoon Gener and Habagat-affected areas is suspended during the moratorium period. In 2011, HGC implemented a moratorium program for victims of Typhoon Sendong. Recognizing the constant threat of severe weather and natural disasters, the HGC Management was given authority by its Board of Directors to immediately implement similar moratorium programs, should the need for them arise. This was in response to Vice President Binay’s directive to all key shelter agencies to always be ready to “help mitigate the suffering of our Kababayans” and “assist in building and rebuilding lives”.

VP Binay as Chairman of the Housing and Urban Development Coordinating Council also sits as Vice-Chairman of the HGC Board.

Buyers affected by Typhoon Gener and Habagat are encouraged to avail of the program by submitting the accomplished application form at the HGC Office, Treasury Department, Jade Building, 335 Sen. Gil Puyat Ave., Makati City. Buyers may call the Treasury Department at (02) 895-9014 for additional information, or download the Moratorium Program guidelines.

 

Towards an ISO 9001 Certified Corporation by 2012

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The Philippine Government encourages Public agencies to pursue measures for improving in governance and public service through quality management systems. This is embodied in Executive Order (EO) 605 Institutionalizing the Structure, Mechanism and Standards to Implement the Government Quality Management Program (GQMP), amending for the purpose Administrative Order No. 161, S.2006. The EO directs the national line agencies and Government Owned Controlled Corporations (GOCCs) to adopt the ISO 9001:2008 Quality Management System as part of the implementation of a government-wide quality management program. The quality management systems shall be certified for demonstrated conformity with ISO 9001:2008 and the applicable Government Quality Management Systems Standards (GQMSS).

A quality management system (QMS) is a way in which a public sector organization can direct and control its activities to address the needs and expectations of citizens. Broadly, it consists of the organizational structure, together with the plans, processes, resources and documentation that are needed to achieve the quality objectives, and to effect continual improvements in the delivery of public goods and services.

The QMS is also supportive of the recently approved GOCC Governance Act of 2011 which sought to reform the administration of GOCCs. While the GOCC Governance Act seeks to strengthen the role of the state in ensuring fiscal discipline among GOCCs, the QMS can help in making the GOCCs more responsive to the needs of the people by ensuring consistent and quality public service delivery.

The HGC, as one of the key shelter agencies in the Philippines that serves as an enabler or facilitator for homeless Filipino families to have their homes, recognizes the need for such quality management system. This supports the HGC’s mandate of providing guaranties to encourage the flow of private funds for mass housing development, promote sustainable home ownership and systematized coordination with partner agencies towards achievement of common goals.

The Development Academy of the Philippines (DAP), as the National Productivity Organization, pursues national productivity and quality improvement initiatives and spearheads the promotion of QMS in government. Thus, the HGC has engaged the Academy’s Center for Quality and Competitiveness for the Development of Quality Management System (QMS) Certifiable to ISO 9001:2008.

On March 21, 2012, HUDCC Chairman and Vice President Jejomar C. Binay and the HGC Board of Directors witnessed the MOA Signing between HGC represented by President Atty. Manuel R. Sanchez and the DAP represented by Mr. Antonio D. Kalaw, Jr.

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