3-Year Program to Transform Housing Finance System Set

Article excerpt

The Housing and Urban Development Coordinating Council (HUDCC) has ordered all key shelter agencies of the government to improve the country's housing finance system in order to check the worsening housing backlog.

Vice President Noli "Kabayan" de Castro, who concurrently chairs the Housing and Urban Development Coordinating Council (HUDCC), gave clear marching orders to the key shelter agencies (KSAs) in a speech at the recent National Developers Convention jointly hosted by HUDCC and the Subdivision and Housing Developers Association, Inc. (SHDA) in Davao City.

He vowed to transform housing finance in the country into a more robust system that will serve as the backbone for sustainable housing--and he wants to do it in three years' time.

De Castro ordered the National Home Mortgage Finance Corporation to ensure the implementation of an operational secondary market.

For the Social Housing Finance Corporation (SHFC), which now handles the Community Mortgage Program, De Castro wants less dependence on government subsidy.

"I also want SHFC to shape up and clean up. I want a rational appraisal system in place," he added.

De Castro also ordered the Home Guaranty Corporation (HGC) to fast-track the disposition of its nonperforming assets to backup its maturing obligations and beef up its guaranty capacity.

He directed the National Housing Authority (NHA) to pursue serious plans on all its prime assets to earn revenues on its properties, and to improve its collection efficiency.

"We should have a revolving fund and be less dependent on national government support," he said.

For the Pag-IBIG Fund, his order is to provide the much-needed liquidity in the market to ensure that housing finance, including securitization and guaranty, runs efficiently. …