Categorized | National News

Ministers Defend BMC Evictions

Former Chairman of The Bahamas Mortgage Corporation, Dr. Duane Sands is blaming  the  Christie  administration for the majority of the BMC’s toxic loans.

Based on Dr. Sands’ timeline and calculations, most of the loans fell into default during the five year period of the first Christie government.

“From 2002 the FNM was voted out of power, the sinking fund deficit was $50 million by 2007  it  was $101, million,” he said.

According to Dr. Sands, there are a number of reasons as to why the PLP allowed the indebtedness  to happen.

“The side opposite has run the Mortgage Corporation into the ground by incompetence, by mismanagement, and by a simple lack of caring. 

“They have booked loans that should have not been booked; they have awarded mortgages as rewards to the party’s faithful. 

“They have refused to bond the sinking fund as they should and as a consequence  we are all paying for it now,” he said.    

Opposition Leader, Philip Davis denied all of the accusations.

The BMC however has issued vacant orders on homeowners, who had become delinquent with their loan payments.

This comes just one week after BMC officials  served eviction notices to persons in Millennium Gardens.  

Housing Minister Romauld Ferreria and  Dr. Sands defended the eviction, saying some borrowers have failed to pay their loans for decades.

He added that like other businesses,  the BMC aims to reduce the amount of bad loans on their books.

The  Housing Minister  told Parliament that when a borrower becomes delinquent in mortgage payments, the BMC first, serves a demand letter requesting payment of the arrears in 30 days and inviting the individual to come and speak with them as stated in the to the Homeowners Act 2017.

If  there is no response, six months after the documents are prepared and a writ is served on the client to pay the money that is owed.

Minister  Ferreria added that when vacate orders are issued, the recipients always have ample time to respond.

Written by Jones Bahamas

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