THE HOME GUARANTY CORPORATION
The Home Guaranty Corporation (HGC) is the government-owned-and-controlled-corporation (GOCC) mandated by law (Republic Act 8763) to promote sustainable home ownership by providing risk coverage or Guarantees and tax/fiscal incentives to banks and financial institutions/investors granting housing development loans / credits, and home financing.
HGC performs its mandate in close coordination with the Department of Finance (DOF), the Housing and Urban Development Coordinating Council (HUDCC), and the National Economic Development Authority (NEDA), and in synergy with other government housing agencies, namely: National Home Mortgage Finance Corporation (NHMFC), the Home Development Mutual Fund (HDMF), the Social Housing Finance Corporation (SHFC), the Housing and Land Use Regulatory Board (HLURB), and the National Housing Authority (NHA). HGC has also built-up a strong partner-relationship with private and government banks, financial houses, investment bankers, and portfolio investors as it maintains its lead position in the government's shelter finance program.
As HGC focuses on promoting home ownership to middle and low-income families, the Corporation's Retail Guaranty coverage has totaled to P 62.67 Billion as of December 31, 2007. Some P 1.15 Billion worth of guarantees have also been issued for Developmental Housing loans packaged for subdivisions, townhouse, condominiums, dormitories, apartments and related residential dwellings.
At the same time, the Corporations has been boosting the flow of private sector funds into housing and urban development. HGC equally promotes Securitization for tapping the capital / securities markets. It has P 9 Billion worth of housing securities in its portfolio as of end December 2007. All in all, HGC has issued a total of P 72.82 Billion worth of Guarantees to client / partner banks as of December 2007. This is 15% higher than the P 63.57 Billion in 2006, and benefited largely low and middle-income families.
The new guarantee enrollments of P 37.10 Billion in 2007 covering 74,102 housing units is a proof of HGC's vigorous drive to support the government shelter program. Of the P 177.58 Billion guaranty capacity of the HGC, it has utilized 44% (P 72.824 Billion) for outstanding guarantees to 38 client / partner banks and housing investors as of December 2007.
In 2008, HGC targets to issue about P 79 Billion worth of guarantees aimed at both significantly boosting the government's shelter program, and further improving the financial position and income-generating capacity of the Corporation.
Similarly, HGC has been aggressively disposing previously acquired properties / assets, particularly residential units, thus, enabling families to acquire houses and lots on a soft and easy payment, installment term of up to 15 years.
As a lead government agency in housing finance, HGC has been organizing and holding a yearly "Housing Finance Forum" starting in 2007. The Second Housing Finance Forum held in February this year at the Manila Peninsula that focused on Securitization, has been warmly welcomed by about 200 participants from local and foreign banks, institutional investors, officials of key shelter agencies and major industry players.
The current prudent yet responsive financial and corporate thrust of the Corporation has been gaining increased trust and confidence from both the Philippines and international financial markets. The yield of HGC's latest issued zero coupon bonds has gone down to 6.125% in 2002. By the end of this year, HGC plans to raise a total of P 10 Billion through bond flotation to further boost its housing finance mission and achieve better financial ratios as it implement its Ten-Year (2008-2018) Long-term Cash Flow and Financial Plan.
HGC acknowledges the continued institutional support of the Office of the President, the HUDCC, DOF, NEDA and all the housing finance agencies of the government, and the invaluable cooperation of HGC's partner banks / financial institutions on both the private and public sectors.
With the sustained macroeconomic growth and arguably the concomitant increase in the target beneficiaries' propensity to pay for home acquisition, HGC commits its fiscal and manpower resources to continue as one of the premier pillars of the country's housing program within the next decade and beyond. HGC shall be the "invisible hand" in the tangible realization of the national dream of "A happy home for every Filipino family".