Foreclosures coming! Fraser wants National Bank debt forgiven
Third District Representative Julian Fraser has warned that foreclosures are on the horizon for some persons who have loans with the National Bank of the Virgin Islands (NBVI).
Speaking in the House of Assembly recently, Fraser specifically referred to Virgin Islanders who have home loans with the NBVI and were offered COVID-19 reprieves.
“I would like for you to investigate the possibility of the interest on their loans during that period being forgiven,” Fraser said to the House.
According to the Opposition legislator, when the banks talked about giving persons a reprieve during the period of COVID-19, many persons didn’t understand or were not aware that the reprieve was only for people who were current with their loans.
“If you were a month late, you didn’t get [the reprieve],” Fraser said. “And when the time came for them to pay up, they were even worse off, so the foreclosures are out there coming in. We can’t afford that.“
Fraser said while there might be some who are wilful in being delinquent, those persons shouldn’t be allowed to take the good ones down with them.
“This is an area that the government has to look into, we own that bank,” he added.
Fraser continued: “And when you do the figures, maybe you might find the figures are too big so you could only do 75 percent. Maybe you might find that 75 percent is too much, so you do 72 percent or 73 and a half.”
He reminded persons that there is no unemployment insurance available in the BVI.
“If we had that, people would’ve had an income coming in, but there was nothing. So, let’s look at that area as one of the things that are necessary to continue to aid in the relief of the suffering that the people are going through,” Fraser stated.
Copyright 2023 BVI News, Media Expressions Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.
Congratulations on the hair cut. It is not only NBVI foreclosing, why pick on them?
NBVI was in a precarious position some years ago where liabilities exceeded deposits. As I recall (correct me if I am wrong) they were bailed out by SS. Do you want them to fail ? People need to pay their loans. If there is difficulty, make an appt and negotiate. Not just don’t pay
Love your Comment.
It would be wise to have the home owners given a small loan payment and more years to pay. As with the banking sector , they have already committed to certain plans and goal for investment. To help development in housing they should be able to give a reduction in the interest.
NBVI was and is a badly managed bank. They wasted a lot of taxpayers’ funds in the past and continue to do so though not at the same rate as in the past. Taxpayers give them a break and bailed them out with their SS money that should have been used to implement an unemployment fund for the people of the VI so that the VI people could have used those funds under the GOVERNMENT lock down to pay loans and other bills while they the VI people could not work.
Let’s be fair and just!!!
Some of you who come on here are either heartless or jealous or both – damn!!!
With regards to the other banks and if the GOVERNMENT has the people at heart, they (GOVERNMENT) can have their bank (NBVI) buy out the loans VI people have with other banks in order to get same reprieve! Let’s talk that!
I agree with you to an extent, but NBVI is not any worse off than the other banks where management is concerned. You probably had no dealings with former ScotiaBank.
“I would like for you to investigate the possibility of the interest on their loans during that period being forgiven,” Fraser said to the House.”
To make a statement like this speaks clearly to why the GOVERNMENT should not be in these industries. He dear not make that statement about the other banks because these are businesses. Now he wants to kill the National Bank.
It’s a problem when one is basing mortage payments on rental income without which one can’t carry the note. Sounds like we’re about to find out how much of a problem this really is.
Yup.. lol rent 1500-2000 for a one bedroom .. They deserve what they get…Don’t build what you can’t pay for on your own at least ..Many have been breaking the backs of renters for years .. Many renters have left so that’s why the pinch is being felt now.. Do good and it shall follow you.
What? That is not the rent for a one bedroom unless they only have certain people in mind.
Fraser’s heart might be in the right place but it’s sad to hear these politicians get up in HOA and talk s**t, fooling people. Banks do not work like he is saying, if Government wants to put assistance programs in place they should do so. I find it troubling that Government, with the assistance of the same district reps, gave away over $6 million dollars to so-called fishers and farmers, this very assistance could’ve been rolled out under a properly managed program, to assist home owners who were facing difficulties with mortgage payments or otherwise. Now here we are, $6 mil short and nothing to show for it!
How about the Bank negotiate a lower monthly payment for a fixed period or until the customer gets back on their feet financially…whichever occurs sooner
This type of nonsense is the reason why mortgage and interest rates are so high in the BVI compared to next door in the USVI . All loans and mortgages have to be secured by property or other assets and with the difficulty put in place by government restrictive regulations and land holding licenses and political representations it is extremely difficult for a bank to sell the collateral for the loan. Does anyone believe the government would give a non belonger a license to buy one of these properties if it was in a belonger family name. Get rid of these difficulties and restrictions on the banks so they can easily get back their funds by selling these delinquent properties and then their is the same international risk to lending in the BVI as the USVI and no excuse for the much higher rates. We all suffer for the few delinquent people and the government imposed restrictions .
Banks do not work with their own money, they are using peoples savings. Who are these politicians to ask for the hard earned savings to be given away to persons who are unable to pay their debts. If Fraser wants to help people he should use his own money.
Why don’t the Government ask the banks to lower their interest rates on loans in the BVI? When you look at rates in other Countries that has the same banks they are much lower than ours and they get more perks than us also. Also the interest on the saving accounts suck! They using our money, charging service fees $5-$7 and to use the ATM ($1 each transaction) and giving me rocks at the end of 3 months as interest? Legal robbery if you ask me.
ayo wouldnt pay them back so must have high interest to cover the loss ayo put on them
I know it is coming based on all the furnished apartments I see for rent these days. They want 1600 to 2500 for a 2 bedroom. Then they want to tell you who can and cannot be in the apartment. Minimum wage is about $1000 a month. Do the math! Rent is not one’s only bill either. I wish them luck. Who are they building those apartments for when majority of renters are outsiders on minimum wage?
I am a retired banker. Gone are the days when banks lent money based on one’s ability to repay outside of rental income. Nowadays it seems that some baking institutions encourage patrons to build with apartments to facilitate repayment. That is why we are where we are. So very sad.