On Wednesday, the board adopted the amendment to the rules and regulations of the Member Home Loan Program, one of the Fund’s local investment interests.
The intention of the amendment is to make the process as objective as possible by outlining steps that are required when a loan becomes delinquent, the board said.
The proposed rules and regulation submitted by Fund administrator Mark A. Aguon enumerated the actions to be taken in addressing delinquent loans and collection efforts.
In delinquent loans, the Fund will continue sending delinquency notice and charging late fees as long as there are past due amounts in 30 days past due to customer requesting payment to bring account current.
If the account becomes more delinquent past 60 days, the Fund will issue a delinquency notice, indicating that if payments are not made, the Fund may take legal action.
The Fund will also refer the account to a foreclosure attorney.
For 120 days past due, the Fund will issue neither final delinquency notice nor notice of default indicating account will be forwarded to foreclosure attorney immediately for processing without further notice.
The Fund has also cited four options as allowable workout plans for borrowers who are 120 days or more delinquent.
The amendment stated that if fully paid at maturity, borrowers will agree to make payments adequate in amounts to payoff the loan by the original maturity date inclusive of penalty fees.
Refinancing is one of the options available to borrowers.
The Fund may also provide a loan-to-value ratio, which is at most 75 percent of current appraised value.
In the amended rules, delinquent borrowers who are either unwilling or unable to adhere to work out plans will be assumed not recoverable and will be forward to the Fund’s foreclosure attorney.
A foreclosure attorney may market the property and list it with a real estate agent or broker on a non-exclusive basis.
The newly adopted regulation also said that if Fund purchases the property at auction, the property will be marketed for sale by the fund.
The Fund can enter a credit bid at the auction for not less than the most recent appraised value of the foreclose property.
The rules and regulations will become effective 10 days after adoption and publication in the Commonwealth Register.
The Fund is now accepting comments from the public which can be addressed to the NMI Retirement Fund office at 1st Floor Honorable Lorenzo I Deleon Guerrero Retirement Fund Building, Isa Drive, Capital Hill, P.O. Box 501247 or email at [email protected].
