CLTC enhancing loan guarantee initiative - KUAM.com-KUAM News: On Air. Online. On Demand.

CLTC enhancing loan guarantee initiative

Posted: Updated:

Just as the rules allowing for commercial leases are expected to be adopted by next month, the Chamorro Land Trust Commission is also moving forward on another set of rules set to strengthen its loan guarantee program to help people build homes.  The Chamorro Home Loan Guarantee Program has been around since the inception of the Chamorro Land Trust Law back in 1994.

"The Chamorro Home Loan Guarantee Program allows the Chamorro Land Trust to help people get the loans they need to build their homes," explained Department of Land Management director Michael Borja, "because the land is not owned by the lessee it's owned by the Chamorro Land Trust, most banks require some kind of guarantee for that since they can't mortgage the land." And according to the director, while the program has been around for about two decades, rules were never in place and only recently were policies set.

"And these rules and regulations give it more strength not only for the guarantor, which is the Chamorro Land Trust, but also sets down the rules for the lender and the borrower. And it's all in an effort to make sure we're strong financially in that area - that the money that are being used to guarantee the funds are being responsibly cared for and the whole program has some credibility and integrity, especially because it is something that gets audited," Borja added.

He adds having these rules in place are important because of the $9 million worth of loan guarantees that the CLTC needs to keep safe. "So we want to make sure we're all protected and we're protecting the fund, because the fund is the people's fund, not mine and we have to have these kind of rules to protect that, and to also make sure it's viable that people coming down in the future who are trying to get loans to build their homes," he said.

Borja says the trust currently has 2,500 leases for agricultural and residential with 8,600 people on the waiting list - a list that dates back all the way to 1995. "And we're looking to move forward in a quite a few number of ways pretty soon, where we're going to try to develop subdivisions that will have infrastructure and then homes, when we start to put people in these homes and when they try to buy these homes, they'll probably need some loan guarantees, as well," he said.

He adds while guarantees were done before as part of the program, they mostly were for disaster relief loans. The rules were adopted by the Commission on Thursday, which will begin the administrative adjudication process.

  • NEWS HEADLINESMore>>

  • Find awesome deals on the Shop Guam app

    Find awesome deals on the Shop Guam app

    It's the biggest shopping event in the Western Pacific, and it's back just in time for your holiday shopping needs. Take advantage of the over 300 offers and discounts during the Guam Visitors Bureau 6th Annual Shop Guam e-Festival. The campaign kicked off earlier this month and runs through February 2018. Download the Shop Guam mobile app, available on both iOS and Android Devices, for more information.More >>
    It's the biggest shopping event in the Western Pacific, and it's back just in time for your holiday shopping needs. Take advantage of the over 300 offers and discounts during the Guam Visitors Bureau 6th Annual Shop Guam e-Festival. The campaign kicked off earlier this month and runs through February 2018. Download the Shop Guam mobile app, available on both iOS and Android Devices, for more information.More >>
  • GFD back up to 8 operable ambulances

    GFD back up to 8 operable ambulances

    They respond to thousands of calls a year. With that being said, mechanical failures will happen from time to time, but the Guam Fire Department is back up to 8 ambulances serving the island daily. According to Fire Chief Joey San Nicolas, currently there are 2 that are serving as back up and 3 that are still undergoing repairs. "There's a rare occurrence that multiple units go down at the same time mostly for the same reasons- which is really air con units in the patient compar...More >>
    They respond to thousands of calls a year. With that being said, mechanical failures will happen from time to time, but the Guam Fire Department is back up to 8 ambulances serving the island daily. According to Fire Chief Joey San Nicolas, currently there are 2 that are serving as back up and 3 that are still undergoing repairs. "There's a rare occurrence that multiple units go down at the same time mostly for the same reasons- which is really air con units in the patient compar...More >>
  • Government wants full payment from Ray Charles Tedtaotao Camacho

    Government wants full payment from Ray Charles Tedtaotao Camacho

    It's a $750 wedding ring, but its significance and meaning, priceless. While Ray Charles Tedtaotao Camacho is serving life behind bars, the government argues he's not being held fully accountable for his crimes. Five years ago, Camacho kidnapped and raped Monique Baza after she made a quick run to the bakery for bread. Though it's a minimal amount for the ring that was never recovered, defense has motioned to waive restitution.  The government, in its response this week, argued ...More >>
    It's a $750 wedding ring, but its significance and meaning, priceless. While Ray Charles Tedtaotao Camacho is serving life behind bars, the government argues he's not being held fully accountable for his crimes. Five years ago, Camacho kidnapped and raped Monique Baza after she made a quick run to the bakery for bread. Though it's a minimal amount for the ring that was never recovered, defense has motioned to waive restitution.  The government, in its response this week, argued ...More >>
Powered by Frankly