The House adapted on Tuesday Senate Bill 7-45 which Delegate Jonathan “Cio” Isechal intorduced several amendments.Delegate Isechal proposed to amend the bill that offered first time home buyers a loan terms of 30 years. The bill that was passed is now offering a maximum loan term of 40 years.The amended bill aims to provide assistance to all qualified homebuyers and to help them remain in good standing with their loans amidst the present economic situation wherein many citizens are now experiencing hard time paying for their monthly loans from the National Development Bank of Palau.The bill will urge the NDBP to take all necessary steps to assist citizens in staying current with their loan payments and working with them to avoid foreclosure.The old bill authored by Senator Mlib Tmetuchl required the borrowers to pay several fees before they can obtain the loan.Isechal proposed establishing a cap of $100 on loan establishment fees and amending the law to require all fees to be financed as part of the loan.Isechal said if the cost of the fees are included in the financing, the borrower will be able to negotiate with the contractor to pay the fee after the loan is disbursed, or the borrower can pay the fee up-front and be reimbursed when the borrower receives the loan.Isechal said the citizens are facing economic crisis and the national government and the NDBP need to work together to establish policies to assist reliable borrowers during a difficult time.
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