The Bahamas Mortgage Corporation (BMC) remains challenged to approve mortgage loans as it finds its clients to be heavily debt burdened, BMC Chairman Patrick Ward said yesterday, adding that in the absence of a formal credit agency, BMC does its best to ascertain the actual debt burden of people interested in acquiring money for a home.
Ward, who was speaking at the opening of the BMC’s new office on West Hill Street, contended that the problem should cease when the credit bureau is up and running.
Ward said despite this roadblock, the BMC makes every effort to offer the best available mortgage options for qualified borrowers.
To date, more than 5,000 Bahamians have built their homes through the BMC.
“Admittedly, applications or mortgage loans remain challenged as Bahamians are heavily debt burdened or require a co-applicant,” Ward said.
“However, every effort is made to ascertain the true
financial obligations of loan applicants and to offer the best available options for qualified candidates.”
Ward said the loan application approval process could be reduced from two weeks to three days when the BMC’s loan origination portal comes online in the second quarter of 2021. According to him, huge improvements have already been made to that process.
Ward said with a loan mortgage portfolio at $175 million, the BMC is one of the only government state-owned enterprises that does not receive a subvention from the government.
“BMC’s operating and administrative expenses, as well as the bond sinking funds continue to be maintained at its current status without assistance from the government,” he said.
He added that the corporation is currently undergoing an audit that should be completed by the third quarter of 2021.
According to Ward, the audit has taken longer than expected because of the absence of accounting information, which is being rectified through an ongoing restructuring exercise.