slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
HOME GUARANTY CORPORATION PowerPoint Presentation
Download Presentation
HOME GUARANTY CORPORATION

Loading in 2 Seconds...

play fullscreen
1 / 40

HOME GUARANTY CORPORATION - PowerPoint PPT Presentation


  • 157 Views
  • Uploaded on

HOME GUARANTY CORPORATION. Historical Background. 1978. 1986. 2000. 1950. E.O. No. 535 Became Corporation & placed under the Ministry of Human Settlements. R.A. No. 8763 Renamed Home Guaranty Corporation. R.A. No. 580 Home Financing Commission. E.O. No. 90

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'HOME GUARANTY CORPORATION' - hue


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

Historical Background

1978

1986

2000

1950

E.O. No. 535 Became Corporation & placed under the Ministry of Human Settlements

R.A. No. 8763 Renamed Home Guaranty Corporation

R.A. No. 580

Home Financing Commission

E.O. No. 90

Renamed Home Insurance and Guaranty Corporation

slide3

Members of the Board

SECRETARY OF FINANCE

Ex-officio Chairman

Secretary Cesar Purisima

HUDCC CHAIRMAN

Ex-officio Vice-chairman

Vice President Jejomar Binay

NEDA DIRECTOR GENERAL

Ex-officio Member

Dr. Arsenio Balisacan

HGC PRESIDENT

Ex-officio Member

Atty. Manuel R. Sanchez

Three (3) other members appointed by the

President of the Philippines

mandates
MANDATES
  • Promote homebuilding and land ownership through self-help and cooperativism
  • To mobilize private funds for home lending
slide5

Guaranty

Homebuyers

Developers

Financing

Institution

Guaranty Concept

Developmental

Loans

Home

Loans

Home Acquisition

Subdivision Development

slide6

Benefits of the HGC Guaranty

Risk Cover

100%on outstanding principal obligation

+

interest and yields up to 11%

slide7

Benefits of the HGC Guaranty

Exemption from BSP

Capital Reserve Requirement

for Credit Risk

Guaranteed Loans are Zero-Risk (BSP Circular 280 s.2001)

slide8

Benefits of the HGC Guaranty

Exemption from BSP

Requirements on Real Estate Loans

  • Limit on REL (Sec. 1. c. BSP Circular 600 s. 2008)
  • Loanable amount may be increased up to 90% of appraised value of collateral (BSP Circular 343 s. 2002)
  • SBL (Sec. 1.E BSP Circular 425 s. 2004)
slide9

Benefits of the HGC Guaranty

Tax exemption

on interests and yields earned on guaranteed loans

Up to 11%

slide12

Benefits of the HGC Guaranty

Easing of Administrative Burden

(in the event of call on the guaranty)

Collection, Foreclosure & TCT Transfer are shifted to HGC

slide13

Benefits of the HGC Guaranty

Sovereign Guaranty

Confers classification and other advantages

slide14

Guaranty Programs

  • Retail Guaranty Program – covers individual housing loans secured by:
    • Real Estate Mortgage
    • Contracts-to-Sell
  • Developmental Guaranty Program – covers developer’s loan for:
    • Development of Residential Subdivision, Condos, Apartment
    • Working Capital
  • Guaranty for Securitization Program – ensures financial instruments issued for housing-related purposes, such as:
  • Bonds, Commercial Papers, A/MBS
  • Guaranty for Small Loans for Housing – ensures unsecured housing-related loan transactions, such as:
    • Microfinance Housing Loans
    • Salary Loans, Multi-purpose loans to be used for housing
slide15

Retail Loans Eligible for Guaranty

  • Purchase of house & lot, townhouse, condominium unit and any other single family dwelling;
  • Purchase of lot and construction of house;
  • Purchase of lot only;
  • Purchase of lot on which the house of the Borrower/Mortgagor presently stands;
  • Major repair, improvement or expansion of an existing house or dwelling unit;
  • Refinancing of an existing loan, which was principally used for any of the above-mentioned purposes;
  • Financing of Contracts-to-Sell executed by Developers in favor of its buyers covering purchase of residential units in a developed subdivision or condominium; and
  • Purchase of residential farm lot
slide16

Types of Guarantee Coverage

(Form of Guaranty Call Payment)

  • STANDARD COVERAGE
  • Call Payment is in the form of HGC Debenture Bond if default occurs within the 1st five (5) years of guarantee coverage
  • Call Payment is Cash if default occurs after five (5) years of guarantee coverage
  • BOND COVERAGE
  • Call Payment is in the form of HGC Debenture Bond regardless of the period or timing of the default.
  • MODIFIED CASH PAYMENT
  • Call payment is in cash based on a scheduled monthly amortization.
  • Payment shall commence on the first month that the loan becomes delinquent until the loan maturity.
slide17

Features of the HGC Debenture Bond

Classification : Government Securities

Term : 3 to 5 years

Face Value : OB + accrued interest (Max of nine months)

Coupon rate : The lowest of Market Rate, Mortgage/CTS Rate, or 8.5% p.a.

Tax exemption : Up to the coupon rate of the bond

Interest Servicing: Semi-annual

Bond Redemption: Principal payable at maturity

Tradability: Traded in the market

slide18

Annual Guaranty Fee

(Retail Housing Loan)

slide19

Annual Guaranty Fee

(Developmental Housing Loan)

slide21

Guaranty for Small Loans for Housing

Guaranty

Financing

Institution

Lends to individual borrowers

Borrowers for home improvement and repairs

slide26

Terms and Conditions of the Guaranty

  • Eligibility of FIs:
  • Track record of at least three (3) years in implementing sustainable microfinance programs;
  • Capital Adequacy Ratio (CAR) of not lower than 12% for BSP-supervised FIs;
  • Latest CAMELS rating of at least “3” for BSP-supervised FIs;
  • With collection efficiency of at least 95%;
  • Capacity and technical capability to offer small loans for housing; and
  • No arrearages in borrowings from wholesale lenders.
  • Loan Value Eligible for Guaranty:
  • Maximum of P400,000.00[1] per borrower

[1] Loan amount may be adjusted/increased upon the approval of the HUDCC and the BSP

slide27

Terms and Conditions of the Guaranty (cont.)

  • Purpose/s of the Loan:
  • House and/or lot acquisition for housing;
  • House construction; and
  • Home improvement/repairs.
  • Eligible Borrowers:
  • Existing depositor/client/member;
  • Borrowers who are determined by the FI to be eligible for small loan for housing, provided that: (a) they do not have an existing small loan for housing; and (b) loan payments should not exceed 60% of their income as determined by the FI’scash flow analysis;
  • With verifiable source of income; and
  • With good track record of loan repayment for the last three (3) loan cycles of any loan type from the FI.

27

slide28

Terms and Conditions of the Guaranty (cont.)

  • Payment:
  • Frequent amortization (daily, weekly, monthly); and
  • Loan payments should not exceed 60% of client’s net disposable income as determined by the FI’scash flow analysis.
  • Loan Term:
  • Up to 15 years for loans above P150,000 and/or for lot acquisition and house construction; and
  • Up to 5 years for loans not exceeding P150,000 availed for home improvement and repairs.

28

slide29

Terms and Conditions of the Guaranty (cont.)

  • Event of Default:
  • Consecutive non-payment of loan amortization by the borrower depending on the payment schedule as follows:
  • Premium Structure:
  • The guaranty premium is two percent (2%) per annum of the outstanding loan balance.

29

slide30

Terms and Conditions of the Guaranty (cont.)

  • Maximum Allowable Guaranty Call:
  • The FIsmay call on the HGC guaranty to the extent of 1.2% of the total enrolled account.
  • Premium Refund:
  • In case there is no call on the guaranty at the end of the guaranty period, the FI shall be entitled to a premium refund of up to 1% of the guaranteed loans.
  • Other conditions:
  • Within one (1) month from release of the loan, the FI shall submit to HGC a proof of the borrower’s utilization of the proceeds as specified in the loan application;

30

slide32

Applies for guaranty line

  • Submits:
  • Application letter
  • Company Profile
  • Profile of Stockholders & Key Officers
  • Audited F/S (for the last 3 years)
  • Credit Policies & Guidelines
  • Prospective Enrollments
  • CAMELS Rating (Banks)/PESO Rating (Coop)
  • Application Fee (P10,000)

2

3

4

5

1

Guaranty Line Application

HGC

Evaluates application

Elevates to HGC Board for approval

Sends notice of approval/disapproval

Guaranty

Contract

Financial

Institution

Executes Contract of Guaranty

slide33

COG

Enrollment Procedure

Enroll accounts for guaranty coverage, submits:

Enrollment Letter containing warranties that:

1.Bank has undertaken credit evaluation of account

2. Loan documents are valid

3. TCT is clean, free from lien

4. All loans are within LTV limits

Batch List

1. At least P 1.0 M or 10 accounts

2. Information about the borrower, the loan, and collateral

Premium Payment

Processes Certificate of Guaranty

Issues Certificate of Guaranty

(signed by HGC President)

Financial

Institution

slide34

Post Audit of Guaranteed Loans

HGC validates sufficiency and orderliness of loan documentation with the FI

HGC inspects housing unit of the borrower

Financial

Institution

slide35

1

2

BORROWER

Call Procedure

Option

Notice of call

Borrower defaults

(6 mos. Non-payment of

monthly amortization)

30 calendar days

from date of default

Pays Call

Evaluates Call

30 calendar days from

conveyance of original

loan documents

30 calendar days

from receipt of

notice of call

IF

VALID

Option

FORECLOSURE

Financial

Institution

Loan documents

slide36

Call Documents

  • Documents to be submitted upon call on the guaranty within 30 calendar days from default date:
  • - Notice of claim
  • - Demand letter of bank to borrower
  • Statement of account and ledger
  • Copies of TCT, Tax Declaration,
  • vicinity map, lot plan and house plan
  • - Bank appraisal report
  • Audit evaluation sheet
  • Documents to be submitted after receipt of Notice of Claim Approval within 30 to 180 calendar days from receipt of notice of approval :
  • - Registered Deed of Assignment and Conveyance
  • - TCTs, tax declaration, tax receipts
  • - PNs, Loan Mortgage Agreement, REM
  • Fire Insurance Policy duly assigned to HGC
  • Bank Certification that all taxes and Homeowners Association dues are updated
slide37

Performance Indicators

Guaranty Capacity as of Dec. 2012P 145.39B

Outstanding Guaranty as of Dec. 2012 P 82.40B

Net Income from Operations as of Dec. 2012 P 457.59M

slide40

Visit us at:

Home Guaranty Corporation

335 Sen. Gil Puyat Avenue, Makati City

Tel. No. +63 2 8964116

www.hgc.gov.ph