BFS enters decade of mortgage servicing in the Philippines
(Business Mirror)
BFS is entering a decade of pioneering multinational mortgage servicing in the Philippines this year, and continues to promote liquidity in the Philippine capital markets by helping both corporate and government clients alike manage loan accounts through primary and special servicing.
As the only independent mortgage servicer in the country, BFS manages loan portfolios though a comprehensive mortgage platform which handles all core competencies for loan servicing. The platform makes use of specialized and efficient technology in processing information with a high degree of efficiency and integrity.
“Through our adherence to global standards and best practices, BFS has been successful in helping both private and government institutions manage both their performing and nonperforming loan portfolios (NPLs),” BFS President Federico Cadiz said. “BFS can also provide clients with wider access to financial services through secondary-market development, for example,” he added.
While BFS works with corporate clients on mortgage servicing and asset management, one of its major roles is managing a portfolio of housing loans acquired by a private equity firm from the National Home Mortgage Finance Corp. (NHMFC).
“The transfer of the NPL management to BFS from the NHMFC in 2005 was a pioneering transaction that allowed NHMFC to maximize cash recovery from delinquent loans, provide cash flow relief and reduce NHMFC’s obligations to their funders,” Cadiz said. “The specialized mortgage servicing that BFS can provide helps institutions address the numerous and complex nonperforming mortgage loan portfolio problems to free up their internal resources toward their performing loans.”
BFS has helped delinquent housing loan borrowers settle long standing obligations by providing them with various loan resolution programs. With a portfolio of over 52,000 NHMFC accounts, BFS has successfully resolved more than 60 percent of the accounts, generating total collection of P11 billion so far. This represents almost 80 percent of the principal balance of the entire loan portfolio, a portfolio that had been classified as highly-delinquent where accounts on average were 10 years in arrears, paid less than 20 percent of the original principal balance, and where 30 percent were accounts with no payments since take-out. The resolution of these loans by BFS has actually helped preserve and legitimize home ownership for more than 130,000 Filipinos.
“We are in a unique position in the industry because of our specialized competency in loan management and servicing,” Cadiz said, adding that its seasoned portfolio management team employs customized strategies, programs, and processes, as well as end-to-end system workflow automation to improve the rate of financial resolution of portfolios through the years.
