Alex Storr: BMC arrears impacts insurance payouts
Bahamas Mortgage Corporation (BMC) Chairman Alex Storr explained yesterday that customers who are in arrears with their mortgages will not directly receive payouts sent by their insurance company to repair damage incurred following the passage of Hurricane Matthew.
Recently, complaints surfaced from some customers of BMC that they were not receiving their funds in full for repairs to their homes post-Hurricane Matthew. Storr spoke with Guardian Business to clarify the matter.
“The insurance is built into the mortgage. So if you are in arrears and you are not paying your mortgage, then you are also not paying your insurance.
“A check is sent into BMC and we work with the customers to have their houses repaired, they just don’t get the funds in their hands. We are having the repairs completed and any balance that is left over after the repairs are completed is then put onto the mortgage,” said Storr.
He said the matter is assessed on a “case-by-case” basis, but “at the end of the day” all repairs will be completed.
The BMC executive stressed that this is only done in the case of people who are in arrears with their mortgages.
“What we find especially this time of year is that some persons might be complaining that they need to complete repairs, but once they get the money nothing happens to the house and the house continues in a state of disrepair,” said Storr.
In some instances, people would repair their homes with their own money, bring the expenses to BMC, and then be reimbursed by BMC, according to Storr.
He added that even if someone hasn’t paid their mortgage in a year, BMC is still upkeeping the insurance payments, which reflects an expense on the mortgage corporation’s behalf.
“At the end of the day, the repairs will be completed, it’s just that some persons won’t get the money in their hands if they are in arrears. Nobody’s house is going to go unrepaired,” Storr asserted.
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