MPLT issued a statement to clarify the relief measures it is providing to its borrowers amid the CNMI’s worsening economic downturn.
“The need to provide relief was realized and assistance was afforded to borrowers,” MPLT office manager Redie Aldan said.
There are 144 loans transferred from the Northern Marianas Housing Corp. to MPLT for first time homeowners and low income residents who benefited from the home loan program.
In March 2001, a consolidated loan agreement was signed allowing MPLT to extend home loans to low income residents.
Aldan said Public Law 12-27 imposed a 10-year moratorium on payments that have to be made by NMHC to MPLT.
As a result, MPLT’s distributions to the general fund were withheld and applied as credits toward payments due from NMHC under the loan.
In April 2007, Public Law 12-27 was repealed by Public Law 15-48 and a settlement agreement between MPLT and NMHC was signed.
This agreement transferred and assigned the portfolios funded by the initial investment back to MPLT, Aldan said.
On Feb. 1, 2008, MPLT took over the administration of the home loan portfolios with the assistance of its loan administrator, the Bank of Saipan.
Aldan said since the transfer of the loans from NMHC, the MPLT board of trustees has been “reviewing and evaluating the portfolio as a whole in conjunction with the economic crisis affecting these borrowers.”
“They continue to work diligently to protect its original investment and provide relief to its borrowers,” Aldan said.
MPLT’s considers the home loan program as vastly different from loans provided by commercial lending institutions.
She said MPLT has placed a great value in the building of homes but homeowners who are of NMI descent should also be given an opportunity to protect their investments whenever MPLT provides relief and assistance.
MPLT manages revenues collected from the use of public lands and its beneficiaries are the people of NMI descent.
