Commonwealth Development Authority loan manager Oscar Camacho told Variety, “38 of the 171 accounts are now in the debt relief program.”
The 38 accounts that Camacho mentioned comprise the $7.78 million in loans, principal only.
He also told Variety that of the $35.329 million portfolio, $8.55 million are good loans.
In a previous interview, Camacho said the CDA is looking at encouraging more borrowers to come in and be in the debt relief program.
“Debt relief is the vehicle to avoid foreclosure,” according to CDA Executive Director Manuel Sablan.
Camacho also said these 38 accounts also comprise the performing loans in the portfolio.
Asked if there are new loans, Camacho said as of Nov. 2010, there are seven new loans amounting to $619,000.
CDA is also trying to ramp up collections.
On the average, CDA’s collections amount to about $60,000 a month.
However, in the first two months of the new fiscal year, the agency saw a big increase.
According to comptroller Stuart B. Smith, in the first two months of the new fiscal year, CDA was able to collect $157,000.
Before the end of the last fiscal year, Camacho also told Variety in a separate interview that the agency was planning to move from $8 million to $10 million or up to 40 borrowers in the debt relief program in the next two years.
Sablan also said that CDA has been trying to work with the clients as much as possible to bring them into the debt relief program and avert foreclosure.
Borrowers in the debt relief program are availing of the 2 percent interest rate with extended terms.
The program is helping the borrowers settle their loans and it also aids the CDA in preserving its core principal.
Through the program, CDA — through the board — can defer payment of accrued interest until some future date then amortize the principal for a longer period of time at a reduced interest rate — allowing the monthly payment to be much lower.
