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Posted by on May 5, 2015 in Corporate News

BFS resolves mortgage debt problems

BFS resolves mortgage debt problems

(The Philippine Star)

BFS has successfully resolved more than 60 percent of accounts of mortgage servicing, generating a total collection of P11 billion.

BFS is a pioneering multinational mortgage servicing platform that combines functional competencies in mortgage finance origination and credit underwriting, loan servicing, default management, property management and sales and secondary market development.

One of its major accounts is managing the portfolio of housing loans acquired from the National Home Mortgage Finance Corp. (NHMFC).

BFS president Federico Cadiz said that the transfer of the non-performing loans (NPL) management to BFS in 2005 was a pioneering transaction that allowed the government agency to maximize cash recovery from delinquent loans, provide cash flow relief and reduce its obligation to their funders.

“The specialized mortgage servicing that BFS can provide helps institutions address the numerous and complex non-performing mortgage loan portfolio problems, and to free up their internal resources towards their performing loans,” Cadiz added.

BFS has helped delinquent housing loan borrowers settle long-standing obligation by providing them with various loan resolution programs.

With a portfolio of over 52,000 NHMFC accounts, BFS resolved more than 60 percent of the accounts, generating a total collection of P11 billion so far.

This represent 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 (NPSTO).

The resolution of these loans by BFS has actually helped preserve and legitimize home(The Phiownership for more than 130,000 Filipinos.

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