Published December 13, 2020, 5:00 AM
The Securities and Exchange Commission (SEC) announced that it has approved the securitization of P319.32 million worth of National Home Mortgage Finance Corporation’s (NHMFC) residential loan portfolio.
In a statement, the SEC said the Commission En Banc approved the secondary mortgage institution’s securitization plan, subject to the fulfillment of certain conditions.
Under the securitization plan, NHMFC will sell a select pool of 1,291 long-term secured residential loans to a special purpose trust known as BALAI Bonds 2 Special Purpose Trust (BALAI Bonds 2 SPT).
Following the sale, BALAI Bonds 2 SPT will issue P319.32 million in asset-backed securities, consisting of P150 million in class A senior notes and P169.32 million in class B subordinated notes.