The securitization program of the National Home Mortgage Finance Corp. (NHMFC) is not only focused on enhancing its liquidity, but also on extending assistance to underserved sectors including Filipino senior citizens, and on promoting environment protection.

So far, the NHMFC has two existing programs designed to serve our Filipino seniors and to help the government in promoting resiliency and sustainability in the housing sector.

MaBuHay Program (HLRPP-3) for Filipino senior citizens

The increasing aging population in the country prompted the NHMFC to establish a new scheme that will help support the financial needs of the underserved Filipino senior citizens. Considering this class of populace and the several housing finance programs that do not explicitly cater to the elderly’s needs for additional fund, NHMFC officially launched in 2016 its version of the Reverse Mortgage Program dubbed as “Magandang Buhay sa BaHay (MaBuHay) Program” (HLRPP 3-MaBuHay). This is a new product in the Philippine capital market designed to help provide additional funds for Filipino senior citizens’ snowballing cost of living.

The NHMFC’s MaBuHay Program is a type of mortgage wherein a homeowner senior citizen can borrow money against the value of his or her home, receiving funds in the form of a fixed monthly payment, a line of credit or both. No monthly payment of the mortgage is required until the borrower dies, moves away permanently or sells the home. It allows senior citizens to convert a portion of their home equity into cash to pay for their medical and health care expenses, cost of travels or vacations, financial obligations or other existing loans. It can also provide additional capital for their planned or existing business, and other ventures.

The MaBuHay Program, as a social welfare instrument for older persons who play a vital support to the development of the capital market, is also NHMFC’s way of supporting Republic Act No. 9994 or the “Expanded Senior Citizens’ Act of 2010.”


When I assumed as chairman of the former Housing and Urban Development Coordinating Council (HUDCC), the BALAI Housing Program was conceptualized and formally launched on Oct. 18, 2017, with the KSAs committing to engage in building sustainable Filipino communities.

Under this program, direct housing production, housing loans, mortgage programs, land registrations and other various housing assistance shall be branded as “BALAI,” which stands for Building Adequate, Livable, Affordable and Inclusive (BALAI) Filipino Communities.

As part of NHMFC’s commitment to contribute to the BALAI Housing Program, to the Philippine Development Plan (PDP) 2017-2022, Ambisyon Natin 2040 and the Sustainable Development Goals (SDG), we created another liquidity facility for housing loan originators called the BALAI BERDE Program (HLRPP 4-BERDE), which is consistent with our objective to support communities, marginalized sectors, local government units and the private sector in building safe and secure communities. This was aimed at helping the housing sector in its efforts to deliver green housing projects. BERDE stands for Building Eligible Resilient Dwelling for Everyone.

BALAI BERDE is the first program of DHSUD that promotes sustainable housing development in safe and secure communities. It advocates a quality of life in a society that contributes to the economy while preserving the environment. It promotes the reduction of community risks and vulnerabilities to disasters as well as encourages energy efficiency, building of resilient housing units, water conservation and the use of low carbon materials.

As a new financial instrument, this program was designed to increase capital allocations for green projects that contribute to environmental sustainability and resiliency. It offers a loan not exceeding 100 percent of appraised value or up to P3 million, with a term of five to 35 years and a fixed rate of 3 percent to 6 percent.

An interest subsidy for poor beneficiaries from Decile 1-6 as defined by the Philippine Statistics Authority shall be provided to make housing loans more affordable. Housing receivables pooled from this program shall be used for securitization.

Securities from the bond issuance shall be classified as “Green Bonds” which comply with the Asean Green Bonds Standards (GBS), wherein proceeds shall be exclusively used to finance or refinance, in part or in full, new and/or existing eligible “green projects” that meet regional, national or internationally recognized standards or certifications.

The formulation of BALAI BERDE is aligned with NHMFC’s pledge to come up with innovative financial products that will augment the needed funds to keep the housing sector vibrant.

NHMFC Communication Team