82% defaulted on UDP mortgage plan
Osbourne Bodden, Minister of Community Affairs, Youth and Sports (Photo by Dennie Warren Jr)
(CNS): The community affairs minister said the UDP government’s Save the Mortgage programme did not work and delinquency rates showed few mortgages were saved. In a short statement on Monday evening before the LA adjourned, Osbourne Bodden said that the only people who benefitted from the government-backed programme were the banks. Lending institutions received more than $2.2 million, which came from the cash given to the UDP government by Dart as part of the ForCayman Investment Alliance.
Bodden told the LA that the ministry of finance had monitored the performance of the programme and by tracking defaults they found that 82% of those who had been helped, had arrears paid off and delinquent home loans brought up to date went on to default again. The money advanced directly to the banks to deal with arrears was given by government as a loan to the home owners on favourable terms.
The minister said that applicants were able to apply for as much as $20,000 and were given 50 years to pay the interest-free loan back and a six month grace period before they had to begin paying. But to date, over 62% of those loans given to 143 people are now in default, he said, despite the low payments.
Acknowledging the problems many families were facing and the hardships as a result of the economic downturn that saw people lose their jobs, Bodden said that “bailing people out” under programmes like the Save the Mortgage initiative was not the answer.
“The delinquency rates clearly indicate that the Save the Mortgage programme was not effective,” he said. “The majority of applicants have once again defaulted on their bank mortgages, despite receiving financial assistance from the government.”
He said government was working hard to get people back to work and tackling the problems from all angles to help people facing hard economic times.
I don’t care whether the Hon. Bush gave it to his supporter or PPM supporters, if he tried to help Caymanian who was and still in need, my hat goes off to him, because I am sure that is more than can be said for my present Administration. How many Caymanians can say they have been helped by this Administration? Yet every day we here about the increase in work permits – ask yourselves where is that money going?, the millions given away on concessions to millionaire- who should be paying more for infrastructure, because the only jobs that few Caymanian will get out of all of this is may the trucking and a few hours of construction. Additional work permits will be needed and given and the social impact of Caymanian will continue to deteriorate.
What this islands need is an Administration who puts Caymanian first and we Caymanian need to stick together and stop tearing down each other. It is always easy for us to make judgment calls when we are not in the situation. Try walking in those burning shoes for day.
Remember how many millions we gave Treasure Island Hotel and Ritz (millionaire who continue to get richer and Caymanian got nothing) but we crying about 2 million he helped his own!!? shame all you!! That is why every nationality in the world will come here and make progress while we continue to suffer- lack of unity!?
You my friend is a perfect example of what is wrong with this country. Only focused on what can be done for you instead of doing for your self……
I am truly embarrassed by the way my people think.
I am 36 yrs old, from parents who believed in hard work, with a father that did not allow me to be idle and forced a trade down my throat. Now me and my wife go to work everyday for a combined 360 to 400 hrs per month to take care of ourselves and our kids.
It’s time to grow up, move out of mommy and daddys house, cut the Ambylicle cord, spread your wings and stop depending on people ( a government) that can’t help you if you don’t help yourself.
Regards
Plumber
High school degree because I attended, but still determined to be the best I can be.
What a mess. At least “my hands are clean and my heart is pure” (wink, wink..grin, grin)
Unable to pay back about $33.25 CI per month but I bet you each family member travels with a fancy I-Phone on their side, drinks 2 six packs of 345 daily, smokes 12 packs of B & H cigarettes a month, every year a woman in the family is “knocked up” for a different baby father and they get $550 CI a month from Social Services for groceries.
Worthless good for nothing UDP-ites !!
Dart trying to help the community out and the politicians giving it away to Tom, Dick and Harry for votes.
We have become a Welfare State – the same as so many other developed and non-developed countries around the world.
SAD SAD SAD !!
”you can come up with statistics to prove anything,.. Forfty percent of all people know that….’
The only ones dumber than a fool are the ones who listen to him.
Again and again and again.
What most people are missing is that this financial gimp wants to do a MORE intense version of it, leveling the fault on the back of businesses, the private sector. and foreign investors.
Much has taken place since the seventies but the original Housing Development Corporation had a mortgage portfolio financed by banks, law firms, accounting firms etc which received debentures. It had board members consisting of expats and Caymanians alike who received $75 per annum. Frequently they just donated these to charity. The manager was Angela Miller who was outstanding and ensured meticulous accounts were maintained. The audit report was unqualified and always on time. Sadly the government of the day in the 90s requested the corporation be dissolved and the portfolio be sold which went to CNB with all debentures being repaid. The brilliant thing is that there were no bad debts.
There is no reason why such a system should not be reintroduced with the right people in charge.
The real cost to CIG is much greater than $2.2m. When you take in the admin, the wasted time, the loss of investment earnings (yes, not much I know), the recovery process (if indeed there was one) then you know that it probably actually cost 3 times as much. At least. UDP is famed for its vote buying, fridges, freezers, tvs, turkeys, and now mortgates you do not have to pay back. Legislation has to be passed to stop this. Only trouble is, the foxes are running the hen house.
Clearly the criteria used by the Ministry of Finance to gauge the performance of the Save the Mortgage scheme is not correct. Here are the proper metrics that indeed indicate its unequivocal success.
1) 1583 votes
2) 30 plus years
3) US $50,000 wagered
4) 7-0 (unanimous)
In addition, it is hardly fair to fault the defaulters since when a politician hands you money with the condition that there is payback, I believe there is an implicit understanding of the expectation.
and these same caymanians will complain about foreigners who live modestly within their means……
Yeah but they think you do that so you can send all of your money out of the country – apparently!
I know someone who got this after they lost their job through their own fault and won’t even try to get another job. They’ll never see that money back.
Handing out money to his constituents like it grows on trees, that’s the “Mac way of doing business”. This trial he is begging for is going to put him in so much hot water not even Jesus will save him this time and his brainwashed people will still go on shouting his name to the heavens.
This is why Big Mac is so convinced that he is worthy of the title forever “Honourable”. He paid back his free government loan (to go gambling), unlike 82% of his supporters!
We must remembered who paid him the money that he used to pay back the loan though – in other words in the end, its still us who paid, and continue to pay for his foolishness.
ELLIO wanted to give them their pensions to squander on top of this lets not forget.
He succeeded, the law was changed to allow Caymanians to withdraw up to 35K of their pensions (I think that was the amount)……that is a timebomb for later in life
Not really. I bought a piece of land free and clear for 35k and I still have a decent amount left in my pension. Why do you paint with such a broad brush?
Answer that again when you are drawing your pension
Only the defaulters who don’t switch sides and support the PPM are made to pay you know how goes bro???? Very few of them!!
Another goverment give away our money failed program.This pandering to the poor lazy people is what is going to destroy this country.
Amazing: perhaps BANKS are better at determining who to lend money to than the Government? The banks were not lending to these people because the banks knew they would default. Gov said lend anyway. so it sounds like the program has turned out exactly as expected. Congratulations.
And we are going to trust them with hundreds of millions to build a dock? What could possibly go wrong??
ridiculous. Whats next? Government telling construction companies who they can hire?…. oh wait a minute…
What if the same people that don’t pay back their mortgages no matter how generous the terms, are the same people Ozzy wants to force companies to give jobs to? Are they going to compensate the companies like they did the banks, for their mistake?
For the love of God why would this grant be extended to unemployed people? It is better to help out those who are working and have genuinely encountered hard times. Folks who applied should be able to prove there credit was good.
Are the defaulters being pursued through the courts? If not it will be a clear signal that there is no real obligation to pay the money back!
That is a long and difficult process. Judges are happy to grant an order for the debt but not so keen on granting orders for enforcement by way of possession. The whole process of getting bailiffs to remove people from their homes isn’t something people want to be involved in (especially if kids are in the homes). And there is always the ability for the debtor to apply for a stay of execution.
Interest accrues on judgment debts. The authorities should take it at least that far, and if necessary enforce on family land where possible. Some of these people are property (and SUV) rich, but cash poor.
The government should sell their debt book and allow the private sector to pursue the money.
If the banks are not prepared to enforce their debts and take on this risk, then they shouldn’t be in the business of banking.
A $20,000 loan, 50 years to pay, interest free. And still most default. Unbelievable.
Shows why moans about mortgage possessions are misplaced.
Like moans about unemployed Caymanians.
Try paying your your bills without an income/job!!!
try not borrowing money you cannot (or more likely, do not want to) pay back
Try getting a damn job!
Try living like all the many, many people who are making it in today’s world. Responsibly. If you fail in life its usually because you deserve it. Now either get out there and learn your lessons like the rest of us or stay in the hole you’ve dug for yourself and be quiet. And don’t try and be like your leadership. There is no responsibility in their lives.
Try selling the boat, the jet ski, the $50,000 truck, pawn some of that gold hanging round your neck , trade in the iPhone 6 for a nokia. That might help.
When they were working, they wasted their earnings and did not priorities. Learn to put your priorities in the right perspective and you should be able to survive. The old saying was, “never hang your hat higher than you can reach it”. There are consequences when you have to overreach.
Their are some people, who are genuinely struggling, those who have lost jobs and are seeking employment, but their are those who are always looking for a free lunch. I often wonder, how our people have become so laid-back, knowing what the Cayman Culture was years ago. Everybody was busy working and earning their keep, now it is the perception that the government must upkeep them, young and old.
The words there and their are often confused and misused because they are homophones (they sound alike). A good way to remember the difference between the there and their is to remember — Here with a T is there; so it refers to a place.
While “there” refers to a place, “their” means belonging to, or associated with, a group of people (e.g., “their clothes” — clothes that belonged to them).
stop being Homophonephobic
The UDP way of doing business to get wotes costing all of us again and again.
Maybe that’s why the banks weren’t going to loan the money to these people in the first place, and why the governments should stay out of the banking business.
You can’t fix stupid
Yep that’s $33 a month or about 1/2 a tank of gas and they still refuse to pay.
Well, they did repay the loans after a fashion – they voted for the UDP.
If that $2.2 million was added to the $600 K written off on the immigration ” fingerprint fiasco ” there is close to 15% of what it would cost to add JetWays to the new airport complex.
O please it was con to begin with a pure joke People with there fancy cars and their kids in school getting the free ride on scholarships living in there 4000sqft homes just sucking the govt for all they can worse than the welfare mommas in the states the poor MLA’s and community workers being cried to day and night It was gross I watched it happen and shook my head.
Got to hand it to them begging church goers networking to get the job done and the free money
Welfare politics. The great gift of the party system.
Thank you creators of the UDP and PPM for sucking the life and spirit out of the country.
Be damn if you do and be damn if you don’t. How many senators in the USA are handing out to their people. When did you read that Obama was going to individual homes to visit. Are we expecting too much from politicians in our country? Some of them certainly help their people but how few can help so many. Opportunity, preferred to handouts.
They got the money hey
You know they got away
Singin’ go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Woo, woo, woo……..
Bet you more than the banks benefited. Like liquor stores, bars, numbers mafia, and Benson and Hedges to name a few. Some of these people, we will never save.
50 year to pay it back??? LOL. Mac should never ever again have any role to play in Cayman’s politics.