Mortgage Corp. delinquency rate trends down, remains high
Guardian Business Reporter
Published: Oct 03, 2013
More than 30 percent of customers at the Bahamas Mortgage Corporation (BMC) are still delinquent in their mortgages, Guardian Business can confirm.
“We have seen a decrease because we have instituted some programs since the new board was introduced. I think we have been trending down. We have been going in the right direction at the right pace,” the corporation’s chairman, Alex Storr, revealed during a press conference at his Russell Road headquarters yesterday.
The BMC chairman projects that 33.5 percent of its customers are in arrears – just over 1,100 people – as the corporation continues to face the same challenges as other financial institutions.
“We understand the challenges that people face out there. The last two, three years economically have been pretty tough on the country with people losing jobs, even cut down in the amount of days they’re working,” he said.
“We understand the challenges, and we are doing our part to work with our customers so they can try and keep their mortgages under control and steadily bring down the amount.”
“We have been making the calls out to the general public on coming in and helping to bring their mortgages up to date.”
In addition to government housing, BMC funds private loans. Storr maintains there is still a demand for housing.
“People come in everyday looking for mortgages. Young professionals come in looking for homes. So there is a demand out there for housing despite what may be the general opinion of what’s going on in the economy,” he said.
“We not only have the government program that we fund but we fund private loans as well.”
In the meantime, the BMC is still in negotiations with commercial banks to take a number of foreclosed homes off their books at the discounted prices; but it is seeking to ensure that it does not end up with a collection of homes that would need major repairs.
Given its current delinquency rate, Storr said that the terms of its memorandum of understanding (MOU) with the National Insurance Board (NIB) require the BMC to be more demanding of its mortgagees.