By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Prime Minister Perry Christie promised yesterday to introduce more relief for struggling Bahamian homeowners before his administration’s term in office expires, as he touted the revised Mortgage Relief Plan for assisting 350 borrowers to-date.
Addressing the 26th annual Bahamas Business Outlook conference, Mr Christie said the long-promised Home Owners Protection Bill could be introduced to Parliament before the general election.
“The plan to-date has assisted over 350 Bahamians in reducing their monthly payments to make their home affordable through the reduction of monthly payments of 25 per cent,” he said of the Mortgage Relief Plan.
“Another element is the introduction of a new Home Owners Protection Bill in the House of Assembly, along with the amendments to the Financial and Corporate Services Providers Act and the promulgation of rules for money lending under the Act.
“This compendium of legislation will introduce for the first time in the Bahamas clear rules around the entire mortgage process, from mortgage origination to foreclosure. It will also discourage irresponsible practices which have contributed to the mortgage crisis.”
Mr Christie reiterated “The final element of this mortgage relief effort will be the introduction of credit reforming legislation. This is extraordinarily significant. We will try as best as we can to introduce, before the end of this term, the Home Owners Protection Bill. We’re supposed to have consultation with Greg Moss, the Marco City MP, who put forth a Private Members Bill” on the same subject.
The commercial banking industry previously expressed numerous concerns over the the Home Owners Protection Bill, arguing that it would make institutions even more reluctant to lend, due to the increased difficulties associated with realising collateral security in the event of default.
The Government committed $10 million to its initial Mortgage Relief Plan in 2012, which was supposed to benefit around 1,000 out of an estimated 4,000 delinquent homeowners. However, it flopped with less than five borrowers qualifying.
Last May, Mr Christie announced plans to revive the scheme, modelled after the US mortgage assistance plan, in collaboration with the Clearing Banks Association (CBSA).
He confirmed that the new scheme would cost taxpayers $20 million over four years, and that it was designed to assist borrowers more than 90 days past due as of May 2016.
Eligible borrowers who have an ability to pay could qualify for a 20-25 per cent reduction in monthly payments, and are required to attend a financial counselling programme.
Commenting on Value-Added Tax (VAT, Mr Christie said yesterday that the levy had enhanced government revenue as well as brought increased accountability and discipline to the business environment.
“We most certainly would have been downgraded had we not introduced VAT,” said Mr Christie.
Comments
bogart 7 years, 3 months ago
Always an advocate for the protection of consumers and this legislation is long overdue to protect Bahamians from the over excesses of bank policies from outside the Bahamas by bank officials who presume to know our economy, culture and Bahamian consumers better than ourselves. The rape of our Bahamian sweat and hardwork and concessions of our birthright in building empires for foreign companies and to see these wind up outside the Bahamas creating jobs in other countries must be checked. The mortgage accounts of some defaulted 4,000 customers need to be examined to see whether customers were really given a fair chance at repaying and success as these banks were at the same time placing 'TARGETS' of mortgages to give out by their employees so that they can gain bonuses and get a favourable Staff assessment report so that they can get their staff increments. Where fraud is proven Bankers should go to jail and these Banks penalized with fines.
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