Camacho and CDA commercial lending officer Greg Calvo, disclosed during a presentation in the House of Representatives chamber on Tuesday, that they have been carrying this burden for a couple of years now.
The House Committee on Commerce and Tourism invited CDA to make a presentation as lawmakers prepare a proposal that will provide relief to the agency’s borrowers.
Compared to other financial institutions, Camacho said CDA’s delinquency rate is significantly high because they treat their borrowers in different way.
From $11 million in 2005, CDA now has only $2 million in hand.
The problem that the agency is experiencing right now, Camacho said, is that no payment has been made on the principal loan amount of $409,946 that was borrowed and will mature in the next four years.
Calvo said CDA is not a traditional lending group and they go beyond what other institutions normally do, and this is why they have a high delinquency rate.
The least desired action, but necessary in order to make idle assets productive, is aggressive collection which CDA is mandated to do.
This, Camacho said, is done through foreclosure or working with the borrowers.
Although it is successful in its aggressive collection campaign that turned around idle assets, Camacho said CDA is still doing a balancing act.
CDA helps borrowers relieve their debts while ensuring that the agency survives.
That is why CDA, he said, has come up with a debt relief program.
