The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Mortgage Corporation (BMC) "bends over backwards" to work with troubled borrowers, a Cabinet minister said yesterday, adding that it is moving to improve a dire financial position.

Romauld Ferreira, minister of the environment and housing, told Parliament that during the 2017-2018 fiscal year the Mortgage Corporation issued a total of 108 loans valued at $15.4 million. "Thirty-two of these loans were government-initiated loans, valued at $5.2 million, and 76 were private mortgages valued at $10.2 million," he said.

Mr Ferreira added: "The BMC is on a course to exercise prudent fiscal management aimed at improving BMC's financial position. Consequently, special attention has been given to the management and control of rival operations, activities and expenses; the improvement of the ability to service the interest and principal payments to the bond holders; and to allocate funds to finance new mortgage loans. Just like all other financial institutions, the BMC aims to limit the amount of bad loans on its books."

Five people in Millennium Gardens, whose homes were repossessed by the Bahamas Mortgage Corporation last week, are being represented by attorney Wayne Munroe, who criticised policies that kick people out of their homes before a new buyer or tenant is found.

"In some cases, it was illness that was a problem," Mr Munroe said earlier this week. "In some cases, it was loss of a job. In one case a woman who came to me, her mother got ill and she works now at her mother's stall at the Straw Market from which she now has to take care of her mother and take care of her responsibilities.

"One of these women, and I know it to be the case, says they told her she has to bring $20,000. Her son used to live with her at that time. Her son went to try get the $20,000; he's in jail for armed robbery now."

Mr Ferreira yesterday acknowledged that eviction orders had been executed recently. "When a borrower becomes delinquent in mortgage payments, the BMC first - pursuant to the Home Owners Act 2017 - sends a demand letter firmly requesting payment of the arrears within 30 days, and inviting the individual to come and speak with them, talk with them to come to an arrangement with them to service their debt," he explained.

"If there is no response, within six months, documents are prepared and a writ is served on the client to pay monies owed to the BMC." Mr Ferreira said that even while awaiting the completion of court proceedings the, BMC still seeks to engage with clients.

K Peter Turnquest, deputy prime minister, told the House of Assembly yesterday: "It is true to say some people have a change in circumstances. It has happened to many, many Bahamians; death, loss of a job, divorce.

"Those persons who were honest about their intent, those who had a genuine wish to be upfront and to meet their commitment, would've come into the Mortgage Corporation and they would've made arrangements for whatever circumstance that exist."

He added: "What happens, is, unfortunately, Bahamians, when they get into trouble and they can't pay for their mortgage or whatever the commitment is, and the bank or the lending institution starts calling, they start ducking.

"They figure if I don't talk to them, they don't come to me, they don't find me, they'll eventually give up. I say to all Bahamians today: If you are in financial crisis or can see you will be in financial crisis, go and see your lender. And the best time to see them is before there is a financial crisis because you have some workable situations."