What does HGC mean in COMPANIES & FIRMS

Overview

Established in 1972 as part of Government Service Insurance System (GSIS), Home Guaranty Corporation provides mortgage guarantees and credit enhancement on home loans extended by banks, finance companies, and other financing institutions to qualified borrowers. It also helps low income earners obtain their own homes through accredited real estate developers where they can avail attractive financing package with reasonable payment terms. In addition to this, HGC also provides credit enhancement and ensures lenders that should a borrower default on his loan obligations due to economic distress or death/total disability caused by natural calamities like typhoon or fire, HGC will take responsibility for any outstanding balance left until such time when payments become current or able again to make payments depending on the nature of its guaranty program.

Function

HGC contributes to increased availability of credit from lenders as it helps mitigate their exposure from losses due to borrower defaults because their risks are covered by HGC's guarantee fund which compensates the lender for any uncollected balances on a loan in accordance with the terms of its guaranty scheme. Since it encourages more lending due to risk mitigation among financiers, prospective homeowners benefit from lower interest rates which would otherwise have been too high if not taken out an insurance or guarantee program like this one provided by CNHG. In short, HGC essentially creates an environment that makes owner-occupied housing much more accessible while allowing private capital markets to operate securely within certain limits.