DAVAO CITY, Philippines—The Ombudsman has given the government’s National Home Mortgage Finance Corp. (NHMFC) in Mindanao 15 days to explain why it foreclosed on a number of low-cost and socialized real estate mortgages and resold these to the Balikatan Housing Finance Corp. (BHFC), a private corporation.
Davao City Councilor Danilo Dayanghirang filed the complaint against the NHMFC and BHFC on Sept. 13, saying it was one of the “biggest scandals” under Vice President Noli de Castro’s administration as chair of the Housing and Urban Development Coordinating Council (HUDCC).
According to Dayanghirang, the NHMFC foreclosed on 9,000 homes in this city alone and transferred ownership to the BHFC, a subsidiary of Deutsche Bank Real Estate Global Opportunities based in Germany.
He did not say when the foreclosures started.
“I took up the cudgels for the city’s homeowners; this is a nationwide problem,” Dayanghirang said.
Last alternative
Lawyer Dante Rizada of the NHMFC’s legal department said the fund agency foreclosed on “thousands” of properties nationwide because they were considered “highly delinquent” accounts.
“Foreclosing properties is our last alternative. We want to understand [homeowners] but we also need to take the necessary steps to protect the agency,” Rizada said.
He said the NHMFC had given homeowners a chance to pay their amortization but financial difficulties prevented them from keeping up with the payments.
Rizada said that before foreclosing on any property, they send out demand letters and notices.
“But some homeowners abandon their property before the actual foreclosure,” he said.
Rizada declined to speak on the agreement between the NHMFC and BHFC.
Though Dayanghirang said the deal was irregular because it did not pass Congress. He also said the NHMFC was transacting business with a company it partially owned.
Dayanghirang claimed the NHMFC owned 41 percent of BHFC, while DB Global Real Estate Opportunities owned 51 percent.
Higher rates
While homeowners could still buy back foreclosed properties by dealing with the BHFC, Dayanghirang said they would have to pay higher interest rates.
The NHMFC only charges nine percent interest while the BHFC charges 14 percent interest.
He also said the BHFC did not offer loan condonation unlike the NHMFC.
Dayanghirang said he had asked Congress for help before he filed a complaint with the Ombudsman but nothing happened.
“Congress, specifically Speaker Prospero Nograles, said he would call for an immediate investigation of Balikatan but until now nothing has been done,” he said.
Source: Inq.NET
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