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Existing Premium Structure for HGC Guaranty

  • Retail Guaranty

    HGC charges a premium fee for the guaranty. The guaranty premium varies depending on the type of guaranty coverage and loan value classification. The premium is payable in advance for every year of renewal of coverage at the following rates:

    • Type of Housing Package
    Premium Rate
    (% to Outstanding Principal)
     
    Standard
    Bond
    Socialized Housing (P400,000 and below)
    1.40
    1.20
    Low-Cost Housing (above P400,000 to P3.0 Million)
    1.45
    1.15
    Medium Cost Housing (above P3.0 Million to P4.0 Million)
    1.50
    1.10
    Open Housing (above P4.0 Million to P10.0 Million)
    1.70
    1.50

    The Modified Cash Flow Guaranty Premium is initially set at 1.25%. This rate, however, may be reduced, depending on the credit risk of the guaranteed program/scheme.

  • Developmental Guaranty

    • The premium fees for developmental guarantees are higher than those for retail because the loan values are greater and the risk components of developmental projects are higher. Among these are: the completion risk, marketing risk, price escalation of materials and labor, and increase in interest rates.

    The developmental premium structure is shown below:

    Type of Housing Package
    Premium Rate
    (% of OPO*)
    Enrollment Fee
    Audit Fee
    Cash
    Bond
    Socialized Housing (P400,000 and below)
    2.00
    1.25
    5,000.00
    1/4 %
    Low-Cost Housing (above P400,000 to P3.0 Million)
    2.25
    1.50
    5,000.00
    1/4 %
    Medium Cost Housing (above P3.0 Million to P4.0 Million)
    2.50
    1.75
    10,000.00
    1/4 %
    Open Housing (above P4.0 Million)
    2.75
    2.00
    10,000.00
    1/4 %
    *OPO , Outstanding Principal Obligation

  • Securitization

    • The guaranty program on securitization of housing assets is designed to enable to raise funds for housing. The securities are backed by continuous payment flows from the underlying mortgages or receivables from CTS and other acceptable assets that are pooled. With this guaranty mechanism, the servicing and redemption of the securities are assured.

  • Other Fees

    • For Retail Guaranty

    1. Line Application / Line Reactivation Fee P 10,000.00
    2. Commitment Fee (creditable as Premium Payment) 1/10 of 1% of approved Retail Line


    For Developmental Guaranty

     
    Socialized
    Low Cost
    Medium Cost
    Open Housing
    1. Line Application Fee
    P 5,000.00
    P 5,000.00
    P 10,000.00
    P 10,000.00
    2. Enrollment Fee
    P 5,000.00
    P 5,000.00
    P 10,000.00
    P 10,000.00
    3. Audit Fee (per year)
    1/4%
    1/4%
    1/4%
    1/4%


    For Securitization and Other Guarantees

    1. Line Application Fee P 10,000.00
    2. Audit Fee (per year) P 100.000.00