40% delinquency in mortgage payments says NHC

By Staff writer, MyVue News.com,

Basseterre, 15th September, 2020, (MyVue News.com) –The National Housing Corporation, (NHC), in St. Kitts says its worried about the high rate of delinquencies currently being experienced from home owners, across St. Kitts.

Based on the assessment provided by the NHC, the situation seems to be one that is out of control.

The Corporation said the “mortgage delinquencies have been climbing pre-Covid-19. Overall, the rate of delinquencies is just over 40%, which is a large percentage when compared to the loan portfolio.”

The spike in delinquency during the pandemic was the biggest rise in the history of NHC.

From a list of 1,832 households, some 767 are delinquent, said the NHC.

The corporation said “despite the government’s stimulus package and other poverty alleviation strategies, mortgage payments seem to be the least of homeowners’ priorities.”

Persons who are qualified for a home mortgage through NHC are “usually” considered persons who are in a lower income bracket, said the corporation, in its release.

But it explained that this is why their interest on the loan will range from 2% to 5%, and the the down payment is minimal, to nothing at all, with a repayment period of 30 years, providing a very low monthly payment.

The NHC said with these special conditions, it is finding it hard to understand  

why people are not paying their mortgages, pandemic or no pandemic.

It is the position of the NHC that there really is no justification for people not making their monthly payments.

Given the special conditions offered to home owners, the NHC feels that they should be eager to make their payments.

The question the NHC seems to be asking itself is, “What will happen to NHC should the delinquency keeps increasing?” 

It said the the Client Relations’ staff contacts the homeowners via various media to offer them a refinancing option.

There is also a moratorium provided for persons who have lost their jobs due to the pandemic, but it seems quite a number of homeowners are apprehensive and have not been taking advantage of these offers.

As such, if the number of delinquent households continues to rise, it only means that the demand will be more than the supply, said the official release.

If the situation worsens,it would be detrimental for many families because staff may have to be sent home, homes will be foreclosed, opportunities to get a loan and a VISA to travel will be denied and families who really need a home will not have that opportunity through NHC, said the corporation in its release.

It can also lead to the garnishing of homeowners’ PAP allowances.

The way to reverse the trend, suggests the NHC, is for homeowners to be responsible and abide by the commitments that they made.

The NHC has been in operations for the past 24 years.

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