KINGSTON, Jamaica — The National Housing Trust’s (NHT) decision to use credit reports in the processing and management of loans starting this month, has come under the scrutiny of the Opposition People’s National Party (PNP), which is querying the role of the credit report.

The PNP is also appealing to the housing trust and the Office of the Prime Minister (OPM) to provide greater clarity on the issue.

Last evening, the NHT sought to quell fears over its use of credit reports, explaining that it will not be used to deny contributors access to usual mortgage loans.

It further outlined in its statement that the reports would be used to:

a) Assist in verifying information submitted by individuals applying for mortgages in excess of NHT’s loan limit of $5.5 million. These loans are only provided in NHT schemes; b) Assist in designing programmes to manage and service mortgagors’ accounts such as loan rescheduling, granting moratoria or other initiatives to assist mortgagors in arrears or facing difficult times.

However, the Opposition, in a release this afternoon, said it finds little comfort in the statement “as it only serves to further muddle the issue of the role of the credit report”.

“The NHT is a social approach to housing not a financial institution and when market driven considerations are being utilised, it fundamentally changes the role of the Trust and has the ability to drive people away from seeking the benefits it provides,” the PNP argued.

The Opposition said it views the requirement of a credit report as an unnecessary, bureaucratic and penal process, which contributors should not be asked to unexpectedly face.

Additionally, the NHT has a very extensive assessment regime which provides all the relevant information it needs to make the determination and undertake the projects or initiatives it mentions, it added.

“What really is the Government’s true motive behind such a dire action?” the PNP asked. Opposition Spokesman on housing Luther Buchanan said: “Home ownership must remain a deep-seated part of our development as a nation, as it has a significant impact on people’s self worth, civic mindedness, community participation and overall quality of life.

“Nothing therefore must be done to stymie the common person’s ability to own a home and this new contemplation by the government does not help their cause.”

According to Senator Sophia Frazer-Binns, Opposition Spokesperson on land, the NHT remains one of the unsullied examples of how public institutions should work for our people.

“We as the Opposition treasure the concept of the NHT and are very proud of the Trust’s historical successes of providing shelter for thousands of Jamaicans, so nothing must be done to put a damper on this,” she said.

The Opposition said it is seeking answers from the NHT and the Office of the Prime Minster to the following:

1. Is NHT still operating as a social enterprise (trust) or a financial institution?

2. What is the exact role and purpose of the credit report if not used to consider the amount of mortgage one can benefit from and the amount of money an institution can lend?

3. Is this what the prime minster meant when he said the trust must develop a fiduciary relationship with its contributors?

The NHT has said the credit report “will assist the Trust in loan rescheduling, granting moratoria or other initiatives to assist mortgagors in arrears or facing difficulties”. a. How does the trust envision this working and will it require credit report for new and existing beneficiaries?

b. How will the credit report assist the NHT in identifying consumers in need of special provisions?

c. Has the trust changed its policy on granting of subsidies?

4. Who will bear the cost of the credit report?

5. Have there been any consultations with beneficiaries and companies both private and public?