CAPACITY BUILDING –  The Philippine Rating Services Corporation (PhilRatings) conducted a specialized training on the rating process of securitization transactions to the National Home Mortgage Finance Corporation (NHMFC) on Monday, 17 July 2023 at the NHMFC Head Office in Makati City.

The NHMFC management deemed it imperative to further build its workforce’s capacity and equip them with relevant knowledge and skill to operationalize its unique role in the housing sector, and in support of President Ferdinand Marcos Jr.’s Pambansang Pabahay Para sa Pilipino Housing (4PH) Program. NHMFC is the sole government  secondary mortgage institution in the country, having issued five residential mortgage-backed securities that were all rated by Philratings with investment grade rating as high as PRS Aa.

The discussion highlighted the relevance of credit rating on NHMFC’s bond issuance to comply with the Securitization Act of 2004, to be a barometer of NHMFC’s asset portfolio, to safeguard the investors from the risks of structured finance products such as credit risk, structural risk, and legal risk, and ultimately to ensure that no repeat of the 2008 Global Financial Crisis brought about by the US subprime mortgage will happen in the country.