Housing Authority Mortgage Portfolio At $84m
The Housing Authority of Fiji's mortgage portfolio stands at $84 million.
This was highlighted by the authority's acting chief executive officer, Isikeli Navuda, while making submissions before the Public Accounts Committee in Parliament yesterday.
However, he said financially they had progressed compared to the previous years.
Mr Navuda said bad loans amounted to $11 million in non-performing loans, but the authority doesn't enforce this area as they needed to maintain the individuals' houses and would look into the process should the need arises.
He said there are around 4000 active accounts with the authority and they looked forward to providing more products.
Mr Navuda said they are focusing on making homes affordable for people by providing the cheap home loans.
He said tendering some of their properties was quite expensive.
Mr Navuda said demands were very substantial and they are working towards developing 1000 residential lots from next year with hopes to increase them in the future.
He said most of their developments focused on the low end of their customers.
Mr Navuda also said some challenges they faced were competition with other commercial banks, suspending mortgage sales and trying to convert non-performing loans into performing loans.
He said around 275 accounts are still processed by the authority amounting to around $7.6 million, it would turn to performing loans.
Opposition MP, Mikaele Leawere then questioned the authority on what actions they would take to vacate people illegally residing on the land belonging to the authority.
Authority's acting general manager lending, Maciu Katamotu responded that in order to vacate notice would be issued a notice and they would also be given compensation.
"They will be given chances to purchase land from that land after it is developed," he said.
Mr Kamotu said the quality of patrolling needed to be improved and non-performance was income generating for the authority.
He said over the years in 2006 to 2007, the non-performance loan stood at $26 million and it later decreased to $11 million.
Mr Kamotu said performing loan decreased in 2009 as they were not many developments of residential lots. However it increased in 2015.
This article first appeared in the Fiji Sun on September 2, 2016.