Quoting Mr. Ada, the Commerce secretary, “disheartening to know that the financial resources required by small businesses in order to sustain and grow within our economy are non-existent.”
But why is this so? Article XII has a lot to do with why so many loan programs are not available in the CNMI.
The Congressional Research Service at the request from U.S. Congressman Sablan in exploring eligibility of CNMI residents for Federal Housing Administration as a way to assist us in obtaining loans by having FHA insure loans found that we in the CNMI are not eligible. This particular research paper in general says that FHA regulations include a number of requirements for FHA mortgage insurance programs. Two of the requirements are: 1) “that an insured property may not have any restriction on conveyance (that is, limits on who can take ownership of the property), and 2) that a lender must be able to convey marketable title to HUD in the event of a default or foreclosure.”
Article XII is clearly an obstacle as it limits ownership on a fee simple basis to only NMD. No. 2 above certainly affects banks and other lending institutions.
So long as we have restrictions, we, collectively will be limited. Our economy will be left behind. There will be limited opportunities for our youth to come back to. Those with means will most likely be able to move ahead. However, those that are facing difficulties now will continue having a hard time and may be disenfranchised. There are examples of this now.
Again, we point out that abolishing Article XII DOES NOT MEANS YOU HAVE TO SELL YOUR PROPERTY. Abolishing Article XII gives you an absolute right to your property without interference by the government or the public. Isn’t this what we all want especially for one of our most valued assets?
Or, are we going after 25 years to continue to tell everyone that we can’t manage our belongings and we need the government and the public to do so?
EFRAIN F. CAMACHO
Navy Hill, Saipan
