The Tribune

By SANCHESKA DORSETT

Tribune Staff Reporter

sdorsett@tribunemedia.net

FREE National Movement Deputy Leader Peter Turnquest said yesterday that it is “laughable” that Prime Minister Perry Christie is bragging about assisting hundreds of homeowners through the government’s mortgage relief plan when thousands of Bahamians are still losing their homes.

In an interview with The Tribune, Mr Turnquest said 350 persons are not nearly enough and the government’s revamped mortgage relief programme has once again failed.

On Monday, Mr Christie said the government’s mortgage programme reduced qualified homeowners’ monthly payments by 25 per cent making them now affordable - where they were once unmanageable.

He called this a “significant” turnaround from the failings of the government’s first attempt at mortgage relief. Assisting struggling homeowners was one of the Christie administration’s campaign promises ahead of the 2012 general election. It was implemented early in this term, however the programme under performed, leading Mr Christie to admit in 2013 that only four or five homeowners were expected to receive assistance.

“It is not enough, assisting 350 persons is not nearly enough,” Mr Turnquest said yesterday.

“There are thousands of individuals who have issues with their ability to repay their mortgage. The fact that the government has thrown money behind a programme that can only help 350 people is another failure. The programme is not much different than what the bank would normally do when negotiating with a lender anyway. It is almost laughable that Mr Christie thinks this is an accomplishment.

“Not to downplay those who received assistance, but this was nothing more than a promise right before elections. The true answer to assisting homeowners is the creation of jobs and expanding the economy.”

Mr Turnquest said a government led by the FNM would take a look at the country’s bankruptcy laws, to see how “we can offer the borrower protection and the ability to restructure their financial affairs and allow them an opportunity to emerge with some security.”

Last year, Mr Christie announced plans to revive the mortgage relief programme, revealing that it would cost taxpayers $20m over four years.

During his budget communication last year, Mr Christie said his administration designed a “comprehensive” mortgage relief programme in collaboration with the Clearing Banks Association to assist borrowers negatively affected by the financial crisis.

At the time, Mr Christie said the revamped programme was expected to provide financial incentives that will allow banks to offer borrowers who have some ability to pay, but have fallen behind, the chance to get back on track.