Challenges in Fund Viability
- Home Development Mutual Funds struggled to attain viability independently.
- Required merging with other long-term funds for full effectiveness.
Government Housing Policy and Institutional Framework
- Housing declared a major national concern.
- Creation of the National Home Mortgage Finance Corporation (NHMFC).
- NHMFC tasked with developing a secondary market for home mortgages.
- NHMFC responsible for financial strategies to address housing problems.
Need for Consolidation of Housing Funds
- Urgent need to consolidate all long-term, low-interest housing funds.
- Consolidation aimed to support the National Shelter Program under the Ministry of Human Settlements.
- A singular agency administration considered essential for effective fund management.
Transfer of Administration to NHMFC
- Administration, custody, disposal, and utilization of Home Development Mutual Funds transferred from GSIS and SSS to NHMFC.
- NHMFC given authority to promulgate implementing rules and regulations related to fund functions.
- NHMFC tasked with handling periodic collections, membership, privileges, benefits, loan availment, and enforcement.
Roles of GSIS and SSS Post-Transfer
- GSIS and SSS to continue fund collection duties.
- Periodic turnover of collected funds to NHMFC mandated.
- NHMFC to pay service fees to GSIS and SSS for collection services.
- Service fees capped at a maximum of four percent (4%) of the collected funds.
Support for Collection Activities
- NHMFC responsible for supporting GSIS and SSS through nationwide information and education campaigns.
- Costs of such campaigns capped at one-half of one percent (0.5%) of the collected funds.
Effectivity
- Executive Order effective immediately upon issuance on March 1, 1979.