In 2005, Balikatan Housing and Finance Inc. (BHFI) acquired through a competitive bid a portfolio of 52,289 of the most highly-delinquent mortgage loan accounts from the National Home Mortgage Finance Corporation (NHMFC). These mortgage loans were highly delinquent by 10 to 15 years at the time they were sold by the NHMFC and less than the original principal was repaid. This highly-delinquent portfolio was specially carved out by the NHMFC with the help of its financial advisor, Ernst and Young, for sale to a third party which was well-equipped to turn the delinquent portfolio around. Balikatan’s mandate through its exclusive provider, BFS, is to facilitate collection from the highly-delinquent borrowers for the benefit of its shareholders, including the NHMFC, and its original funders, the Social Security System (SSS) and the Home Development Mutual Fund (Pag-ibig). Ultimately, the benefit redounds to the pension fund members whose contributions were used to fund housing loans to its members through the NHMFC and are disadvantaged as pension fund money is lost through non-payment of mortgage loans.