Mortgage Insurance Act to be amended

The Government is seeking to amend the Mortgage Insurance Act (MIA), in an effort to increase the percentage of the appraised value of a property for which mortgage indemnity insurance can be provided.

This was disclosed by Minister with responsibility for Housing, Hon. Dr. Morais Guy, during his contribution to the 2012/13 Sectoral Debate in the House of Representatives, on July 10.

The Minister said that on the advice of the Jamaica Mortgage Bank (JMB), the percentage is being increased from 90 to 97 per cent.  This amendment will reduce the burden of a high down-payment, which is currently between 10 to 15 per cent, and closing costs, Dr. Guy stated.

He said the proposed amendment is aimed at making mortgages more accessible to the average Jamaican trying to acquire a home.

Meanwhile, Dr. Guy informed that it is the intention of the JMB to have the mortgages issued under the Secondary Mortgage Market (SMM), insured. As such, he said the bulk of the mortgages issued under this programme will form a part of the 1,500 undertaking-to-insure that is expected to be issued over the medium term under the Mortgage Insurance Indemnity (MII) Plan.

By Athaliah Reynolds-Baker, JIS Reporter