The Nassau Guardian
Govt seeking to rehabilitate mortgage relief program
The government is seeking to “rehabilitate” its failed mortgage relief plan, Prime Minister Perry Christie said yesterday.
Christie said the government held a meeting on the matter yesterday.
However, he did not provide details as he said the process has just started.
Christie spoke to reporters following the opening ceremony for a UNESCO meeting at SuperClubs Breezes.
The mortgage relief plan, which was touted by the Progressive Liberal Party (PLP) ahead of the 2012 election, was projected to assist 1,100 homeowners when a watered down version was presented to Parliament.
But it helped fewer than 10, officials admitted.
The government allocated $10 million for that plan in September 2012.
According to the government, there were around 4,000 homeowners in arrears.
In January, Minister of State for Finance Michael Halkitis said the government was examining an alternative proposal to the plan, which he said fell far below expectations.
He said at the time that until an alternative plan comes into effect, the government hoped to provide homeowners with other forms of protection.
Christie said yesterday the government is still committed to the pledge to bring relief to delinquent homeowners.
“Clearly, from my point of view, our commitment to govern has been mandated by the people of this country,” he said.
In its original plan, the PLP pledged to get local banks to agree to a 120-day moratorium on foreclosures and to write off 100 percent of unpaid interest and fees for those facing foreclosure.
The PLP also said that it would encourage banks to reduce the interest rate on the mortgages in question to prime plus one percent.
However, these details were not included in the modified mortgage plan, which was later presented to Parliament.
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