NHT says credit report to be used for loans exceeding $5.5 million

The National Housing Trust (NHT) has provided details on its plan to request credit reports for some of  its contributors seeking mortgages.

NHT Customer Care Manager Donnetta Russell says the credit report will be used for an initiative which offers 100-percent financing for contributors who want to borrow more than J$5.5 million to purchase a home in a NHT scheme.  

She explained that the report is necessary to improve the verification process and determine whether beneficiaries are able to repay.

Russell said the credit report will also be used to determine special assistance to beneficiaries facing hardship.

Contributors borrowing under the $5.5 million loan ceiling will not be required to produce a credit report.

“We do go through the process of verification and all eligible NHT contributors once your eligible for up to $5.5 million of course we go through the verification process. , in that instance the contributor does self reporting and we use that in the assessment. When we lend sums above $5.5 million , we need to strengthen the verification process because the risk will be increased at that level."                                                    

Russell who was a guest on Beyond the Headlines  also said that the delinquent rate for mortgagors who borrowed below the loan ceiling is at 13-percent and added that the NHT will begin to share credit information with other entities.