The Credit Management Practices of the National Home Mortgage Finance Corporation
Keywords:credit management, practices, mortgage, 5 Cs of credit
The study intended to determine the effectiveness of the credit management practices of the National Home Mortgage Finance Corporation. It used the descriptive method of research. The researcher utilized the survey questionnaire. Frequency, Percentage distribution, weighted mean, ranking, independent sample t-test, and one-way analysis of variance were employed as statistical tools. The respondents aged 31 –40 years old, female, married, bachelor’s degree holder, earned a monthly average of P10,000.99 –P20,000.00, owned a single detached unit/single type and source of funds came from salary. The credit management practices of National Home Mortgage Finance Corporation were effective in terms of character, capacity, condition, capital, and collateral. There was a significant difference in the respondents’ assessments in the credit management practices of National Home Mortgage Finance Corporation when grouped according to profile, when grouped according to age had different assessments however the overall assessment had a significant difference. When grouped according to monthly income borrowers had different assessments, but generally, the assessments had no significant difference. When grouped according to the source of funds, the borrowers had different assessments; however, the grand mean was significantly different. When grouped according to sex, civil status, highest educational attainment, and type of house owned, respondents had the same assessments and generally had no significant difference. Implement a credit policy to provide a framework for consistent credit decisions directed toward the corporation goals. The assigned account officer should check the validity of the information that the borrower provided. Use an objective credit scoring; the corporation should also focus on the facts related to credit risk rather than personal feelings. The corporation should constantly remind borrowers of the status of their housing loan in case they overlooked it. They are optimizing the results of assets liquidation by evaluating the asset disposition along with all the costs involved considering all the resources to maximize the returns. Converting assets into cash by selling accounts through securitization of accounts, but the process has an undetermined period due to uncontrolled timeframe. The turnaround time in this process should be observed to speed up the process of liquidity and financing all obligations.