Previous Story
NMHC inks housing loan pact with Bank of Guam
|
Posted on Jan 12 2000
The Commonwealth may soon see a growth in the construction sector, following a residential financing arrangement reached between the government’s Northern Marianas Housing Corporation and the Bank of Guam.
Under the agreement, Bank of Guam shall provide guaranteed loans to borrowers for purposes of home construction and renovation, as well as for the purchase of single family residential homes.
The Guaranty Agreement and Loan Purchase Agreement were executed yesterday between NMHC Board Chair Juan S. Tenorio, Executive Director MaryLou S. Ada and Bank of Guam president Anthony Leon Guerrero.
Mr. Tenorio said the execution of the agreements will allow the NMHC to enhance residential loans assistance to borrowers for purposes of new home construction and improvements.
He said NMHC remains to be swamped with residential loan applications, with demands for residential financing exceeding NMHC’s supply of available funding.
CDA has been receiving an average of 20-40 housing loans every month.
Government figures noted an increase in total money loaned out by private banks in the CNMI during the fourth quarter of 1998 which amounted to $304.71 million, compared with the previous year’s $279.98 million.
Bank experts attributed the big bulk of increase in total money loaned out to the real estate sector which posted some $21 million growth, from $32.9 million in 1997 to $54.7 million last year.
Despite its limited funding, NMHC was able to commit over $4 million for the construction and rehabilitation of public housing, and landscaping of grounds in 1996.
Ms. Ada said NMHC’s partnership with private lending institutions such as Bank of Guam helps to stretch limited government funds to assist many new home owners.
“The construction activities that will come as a result of this collaboration with the Bank of Guam will help generate jobs and stimulate economic growth; will employ local labor; and use a vast array of locally available services and products,” she said.
In January 1979, the Bank of America had guaranteed residential loans to many families who sought assistance from NMHC’s predecessor, the Mariana Islands Housing Authority. (Aldwin R. Fajardo)
