PCC files complaint vs NHMFC, 8 insurers

MANILA, Philippines — The Philippine Competition Commission (PCC) has filed a complaint against the state-run National Home Mortgage Finance Corp. (NHMFC) and eight insurance firms for violation of the Philippine Competition Act (PCA) by engaging in an agreement which restricted competition.

In its statement of objections filed on Dec.27, the PCC’s enforcement office charged the NHMFC and insurance firms Beneficial Life Insurance Co. Inc., Country Bankers Life Insurance Corp., First Life Financial Co. Inc., Fortune Life Insurance Co. Inc., Manila Bankers Life Insurance Corp., Philippines International Life Insurance Co. Inc., The Manufacturers Life Insurance Company (Phils) Inc. and United Life Assurance Corp. for going against Section 14 of the competition law or engaging in an anti-competitive agreement.

Also charged were members of the executive committee that administered the agreements of the insurance pool such as Ignacio Macrohon Jr.(president), Daniel Mercado Jr. (vice president), Jaime Santiago (chairman of the technical committee), and Evelyn Carada (secretary and treasurer).

PCC said its enforcement office found the parties’ agreement to be anti-competitive, as it allowed the pool of insurers to exclusively and indefinitely provide mortgage redemption insurance (MRI) to NHMFC and its covered borrowers.

NHMFC manages different mortgage loan portfolios that are originated by banks, housing developers, and other primary lending institutions offering loans for socialized and low-cost housing.

Borrowers of these primary lending institutions, whose housing loans have been assumed by NHMFC, are required to have MRI.

Through the MRI, there is assurance outstanding loans will be settled even in the case of the borrower’s death.