During last week’s NMHC board meeting, it was disclosed that the agency would be issuing a notice of demand to the 54 borrowers whose loans had not been paid for over 120 days.
Based on records presented by Chief Accountant Roger Dris, the total amount was $2,549,046.06 for 45 homes as of Sept. 30.
Last week, NMHC credit and mortgage division manager Jesse Palacios reported to the board that there were 54 accounts that needed to be issued a notice of demand.
These accounts would also go through the same process undertaken by 32 other foreclosed accounts — 23 of which had already been auctioned off last Oct. 4.
In an interview, Palacios said there were also some borrowers who have not updated their accounts for two years.
NMHC said it is doing the best it can to assist the borrowers and is encouraging them to come forward and work with the corporation to make their accounts current.
NMHC has a loan modification program that reduces the interest rate from 9 to 6 percent. If this interest reduction is still not affordable for the borrowers, NMHC allows for a loan extension, provided the property’s value is more than what the extension is.
Palacios told the board last week, “We are working with some of the 54 borrowers. Some of them are willing to keep the house and update their accounts.”
He said some borrowers are looking at getting a moratorium on payments rather than keeping accounts current.
Dris, in his review of the fiscal year 2011 finances of the agency, reported that non-performing loans, excluding interest, amounted to $4.4 million.
There was a total of $5.9 million in performing loans as of Sept. 30.
In fiscal year 2010, the NMHC had $5.4 million in delinquent loans with $1.3 million receiving demand notices.
According to NMHC, it has $3.1 million in restricted funds and $163,968.91 in unrestricted funds with $3,328,220.28 in cash.
The housing agency entered into an agreement with the U.S. Department of Agriculture-Rural Development, formerly known as the U.S. Farmers Home Administration, that allows NMHC to assist borrowers in seeking financing from USDA-RD for housing construction.
Under the agreement NMHC is required to guarantee any deficiency in foreclosure proceeds should borrowers default on their USDA-RD loans and the housing agency was made to open an escrow account as security.
NMHC portfolio
Based on a preliminary, unaudited report, the NMHC’s total portfolio was $21,978,456.38 as of last Thursday.
In his analysis, Dris said compared to the last fiscal year, NMHC posted a $1.74 million increase because of improvements.
He also reported that the agency’s total equity reached $14.24 million.
He said NMHC had already paid $23,066,557.81 to Sandy Beach Homes project under the Low Income Housing Tax Credit as of Sept. 30.
Based on preliminary, unaudited financial reports, the NMHC had $70,000 in excess funds.
“We are in the black,” Tomokane said.
