Jamaica Mortage Bank

NAME OF FEATURE | THE GLEANER | SUNDAY, JUNE 6, 2021 6 with the entrance of highly capital- ised financial institutions, as they sought to diversify and increase their loan book. In the2010s, given theprogrammes institutedby successivegovernments to reduce debt-to-GDP levels, aswell as the dynamics of borrowing rates, the Bank had to pivot away from the low-income housing market to the low-middle- to middle-income seg- ment, as well as expand into more commercial financing, in order to maintain margins and keep afloat. During this period, the Bank estab- lished itself as a serious competitor when it boldly and successfully ar- ranged the financing of the UWI’s state-of-the-art dormitories now branded 138Student Living. Additionally, the Bank used the secondary mortgage product to influence the average market mort- gage rates downwards from a high of 18 per cent to nine per cent. It also, amended the MII Act to sup- port its participating financial in- stitutions to increase loan-to-value ratios of up to 97 per cent. In the past six to seven years, the Bank has made significant strides as it returned to more acceptable delinquency levels and grew expo- nentially in the primary financing market through its risk-based ap- proach to credit. During that period, the Bank reviewed more than 65 construction projects islandwide, valued at over $29 billion, and ap- proved an increased number of new female developers. The Jamaica Mortgage Bank’s legacy of the past 50 years is very evident in the number of Jamaicans it has facilitated with homeowner- ship through its business resilience and innovation. As the Bank pivots for the next 50 years to a privately listed company, it is our intent to build on that legacy of a great Jamaican financial institution pro- viding safe and affordable shelter for Jamaicans, while contributing to wealth creation of the ordinaryman. Thanks to the great staff of the JMB for an excellent 50 years, and our sincere gratitude to all who have supported the Bank thus far. We crave your continued support and blessing so that over the next 50 years, Jamaica, through its residen- tial and commercial development sector, will become the beacon and envy of the entire world. COURTNEYWYNTER General Manager SINCERE CONTINUED FROM 5 JAMAICA MORTGAGE BANK 50TH ANNIVERSARY developers. In the 1970s, when the Government created 40,000 hous- ing solutions under the administra- tion led by the Most Honourable Michael Manley, the JMB was so cru- cial to the housing finance strategy that the Government was moved to upgrade the bank’s status from a limited liability company to a stat- utory corporation. The Jamaica Mortgage Bank Act was passed in Parliament in June of 1973 to ensure that the country had the legislative framework for ensuring liquidity in the housing finance market and an institution to manage bulk financing for de- velopers. The act also immediately removed purchasers’ risk in devel- opers’escrow accounts, which at the time was a source of great concern. Since then, Jamaica has come a far way in housing development financing, and it has been mainly due to the contributionmade by the JMB in the sector. It should also be noted that this mandate has been executed at no cost to taxpayers, as the corporation has been profitable. The success of the JMB has been achieved through the professional- ism and efficiency of the manage- ment and staff, led consistently by committed boards of directors. I wish the bank all success in its plans as it seeks to finance safe and affordable housing for Jamaicans, giving all access to homeownership. MIKAEL PHILLIPS, MP Opposition Spokesman of Housing, Transport andWorks CRUCIAL CONTINUED FROM 4