The Tribune

WITH the government’s mortgage relief programme slated to begin in less than a week, Prime Minister Perry Christie said he expects 1,100 Bahamians to be eligible to qualify for assistance.

In response to growing concerns over the scope and probable impact of the scheme, expressed by both the Free National Movement and international credit rating agency Moody’s, Mr Christie said everything his government has attempted to do has been governed by the current state of the economy.

“What we wanted to do was fulfil the political mission, that is what we said in our Charter for Governance, to show that we have begun the process.

“Everything you do with respect to these types of programmes will depend on the health of the economy,” the Prime Minister said.

“I am very, very grateful with the help of the clearing bank that we have been able to initiate the programme and much to the credit of both parties and the Ministry of Finance and the clearing banks we have been able to go much further than I have anticipated in terms of coverage and as I said, as we become a healthier economy, and things go as I hope they will go, then we can anticipate an improved situation.”

At this point, Mr Christie said, his government must watch how the programme is implemented to ensure that people do not take undue advantage of it before there is the possibility of expansion.

The process, he said, will be one that his administration will be watching “very carefully” to ensure that those who need it the most benefit from it.

Requirements for eligibility under the government’s plan are: owner occupied primary residential properties only, including owner occupied duplexes, not vacant lots or revenue generating/investment properties; mortgages originating prior to January 1, 2009; outstanding mortgage principal amounts, not exceeding $500,000; acceptable credit history prior to June 30, 2008 and loans that are delinquent due to documented financial hardship caused by involuntary unemployment or chronic illness.

Mortgages must also have sufficient sustainable documented and verifiable income to support the restructured payment and lenders must have a valid first and possibly second mortgage and the property must be clear of other mortgages or loans.

The borrower will also have to sign a forbearance agreement and perhaps new loan contracts that outline the extent of their obligations and the results of any breach.

FNM Leader Dr Hubert Minnis has already gone on record stating that the Mortgage Relief Scheme is a clear case of “cynical smoke and mirror politics” – as the government’s preconditions and restrictions, which were not made public during the election campaign, will severely limit the number of people who are eligible for relief.