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Bank eyes interest in fed’s housing program
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Posted on Apr 25 2001
If negotiations do not miscarry, the Northern Marianas Housing Corporation is expected to get additional funding assistance for its Rural Development projects from BankPacific.
Housing Chair Juan S. Tenorio revealed that his agency and the banking institution have been talking for BankPacific’s possible participation in the agency’s several home mortgage programs.
Mr. Tenorio added that with the way negotiations are shaping up, BankPacific appears to be interested in joining the US Department of Housing and Urban Development initiative.
BankPacific is eyeing a $1 million loan, which would be used to finance housing requirements of NMHC’s long list of people aspiring to have their own homes.
However, according to NMHC Mortgage and Credit Division Manager Tom Duenas, the housing corporation would not be handling the $1 million loan directly.
Mr. Duenas said that what the NMHC would do is provide the participating bank a list of people who are in need of housing. From there, the banking institution would be the one to negotiate, approve and manage the loans.
Mr. Tenorio also said BankPacific would take out the $1 million funding from its budget allocation for insular affairs, which has been earmarked in Washington, DC.
Aside from BankPacific, the NMHC is also keen in recruiting Bank of Guam to the program. With the Guam-based bank joining the housing agency’s Rural Development project, people from Tinian and Rota can avail themselves of the housing loans.
Unlike, Bank of Hawaii, who was the first to participate in the program, and Bank Pacific, Bank of Guam has branches in Tinian and Rota.
Representative William S. Torres has long lobbied for the participation of Bank of Guam to HUD’s Rural Development Program. He even wrote to the president of Bank of Guam to specifically ask for the bank’s involvement to the program.
Hong Kong and Shanghai Bank is also another possible partner being courted by the NMHC, Mr. Tenorio said.
Currently, only the Bank of Hawaii has committed $1 million to the Rural Development projects of the Commonwealth housing corporation. According to Mr. Tenorio the amount of money appropriated by Bank of Hawaii is enough to make 13 new low-cost dwellings.
