Mass housing developer 8990 Holdings Inc. has tapped BPI Family Bank for its in-house housing mortgage loans worth P1 billion, it was announced Thursday.
In a disclosure to the Philippine Stock Exchange, 8990 said it had signed a memorandum of agreement for the purchase of its in-house contract-to-sell (CTS) receivables by BPI Family Bank.
The Ayala-owned bank will immediately convert the CTS into a mortgage loan amounting to P1 billion, under the bank’s so-called “Kayang-Kaya Pabahay” program.
The disclosure stated that the arrangement would last for two years, although the recourse would end once the CTS is converted into a mortgage loan.
“The agreement with BPI Family is a significant milestone for 8990,” said 8990 Holdings CEO Jesus Atencio. “It signals the growing acceptability of CTS receivables with the banking sector, paving the way for the creation of alternative housing finance in the private sector, not only for 8990, but also for the entire mass housing sector.”
Atencio said 8990 is looking forward to creating similar arrangements with other banks and financial institutions in the near future.
The firm said the actual date of purchase is today, Oct 30, 2015.