Mortgage Banker Suggests Growth Through Housing

One of the country’s leading mortgage bankers has suggested that Jamaica could  use housing developments to effectively grow the economy, as the country is lagging behind in that area.

“If you look at mortgages in Jamaica as a percentage of gross domestic product, compared to developed countries, I think that is a clear indicator that we are not using housing as a development strategy in Jamaica,” General Manager of the Jamaica Mortgage Bank (JMB), Courtney Wynter, has said.

Addressing the Rotary Club of Kingston East and Port Royal in Kingston, on July 13, the General Manager pointed out that there is a huge gap between the demand for low and middle income housing, which represents 70 per cent, in comparison to the supply. This, he said, is another key indication that the country is not using housing for growth.

Proposing a solution, Mr. Wynter said the answer lies in the use of residential mortgage-backed securities.

“The major issue for the Government is liquidity. For example, the United States has systems like Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Company) that pump liquidity in the economy for housing. Jamaica can use residential mortgage-backed securities,” he said.

The result would be more liquidity for housing developments across the island, which would result in employment for more persons and growth in the economy.