Refunds No Impact on NHT Loan Portfolio, Cash Flow

The National Housing Trust’s (NHT’s) policy allowing cash refunds to mortgagors with direct NHT loans will have no adverse impact on the agency’s loan portfolio or cash flow, says Assistant General Manager for Corporate Communications and Public Affairs, Dwayne Berbick.

Addressing a recent JIS Think Tank, Mr. Berbick noted that the adjustment only changes how the funds are disbursed and does not affect the Trust’s financial planning.

“The contribution refunds… the owner of that is the customer, so the NHT receives these monies [and] invests them actually in our different instruments, the primary instruments being our mortgage portfolio and our construction portfolio. And so, the NHT is not surprised that these customers are now able to apply for it and [we] would not be limited any at all in terms of making a payout,” he said.

The policy change took effect on July 1 of last year, allowing all eligible NHT contributors, whether public or private-sector workers, or self-employed individuals, to receive their contribution refunds in cash.

Previously, this cash refund option was exclusively available to public-sector workers, while contributions for other individuals were automatically applied to their mortgage accounts.

“Really, it’s just a change in where the payout is made because, otherwise, this would have gone as credit to their mortgage account. So, it’s not monies that the NHT had any plans for, per se, because that would have been going to the customer in any event. The difference is just that it’s going now as cash in hand versus direct credit to their mortgage account,” Mr. Berbick pointed out.

He is encouraging eligible contributors applying for their refund to review the application requirements and submit their claims, preferably through the NHT Online portal for faster and more convenient service.

Contribution refunds are available for payments made in 2018 and may be requested at any time during the year and from anywhere.