Securitization Will Lead to Mortgage market.(Business)
Byline: MELODY M. AGUIBA
The securitization of around R10 billion housing mortgages of Social Security System (SSS) will introduce a new industry in the Philippines on the buying and selling of secondary mortgage.
A senior official of the National Home Mortgage Finance Corp. (NHMFC) said the secondary mortgage industry (SMI) will naturally emerge from the securitization of the housing collaterals held by SSS, Government Service Insurance System (GSIS), and the Home Development Mutual Fund (HDMF).
If we do this, it will impact on the whole country (in terms of capital generation), he said.
With the creation of an SMI, the NHMFC will evolve as the lead agency in the trading of housing securities or housing bonds.
What we will do is to gear up NHMFC to be the underwriter of secondary mortgages. This is the true function of NHMFC according to its charter. Well go back to its original mandate. We will be developing the capital market. There will be a reorganization, and people will go through training. We made arrangements for a program to train our people. It (trainor) can be BAP (Bankers Association of the Philippines) or a more experienced group . …