Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697806394923.pdf (Jamaica)
A BILL ENTl1l.ED AN ACT to Amend the Mortgage Insurance Act.

[ ] by and BE IT ENACTED by The Queen's Most Excellent Majesty, with the advice and consent of the Senate and House of Representatives of Jamaica, and by the authority of the same, as follows:- 1.

TIlis Act may be cited as the Mortgage Insurance (Amendment) Short title Act, 2014, and shall be read and construed as one with the Mortgage :: struction .
Insurance Act (hereinafter referred to as the "principal Act") and all amendments thereto.

2.

Section 4 of the principal Act is amended- Amendment of section 4 (a) in subsection "90per centum numerals "97 per cent"; and " (l)(b )(i) by deleting the words and numerals of principal and substituting therefor the words and Act.
2 (b) by deleting subsection (4) and substituting therefor the following- " (4) The Minister may from time to time- (a) vary the percentage of appraised value under subsection (l)(b )(i), by order subject to affirmati ve resolution; and (b) prescribe in respect of the percentages or the amount specified in subsection (l)(b Xii) or in section 5.".

variations Amendment of section 5 of principal Amendment of section 14 of principal Act.

3.
3.

Section 5 of the principal Act is amended by deleting from subsection (1) the words "per centum" and substituting therefor the Act.

words ''per cent".

4.

Section 14 of the principal Act is amended by deleting from subsection (2)(a) the words "per centum" and substituting therefor the words "per cent".

Passed in the House of Representatives this 11 th day ofNovember, 2014.

MICHAEL A. PEART Speaker.

3 MEMORANDUM OF OBJECTS AND REASONS The Mortgage Insurance Act (''the Act") was last amended in 2008.
That amendment was intended to facilitate the writirig of more mortgage insurance the amount of insurance that could be issued :from 1.2 policies, billion by increasing dollars to 2 billion dollars.

This Bill seeks to further amend the Act to make mortgages more accessible to the average Jamaican.

Curren tly, the large deposit required and the additional closing costs incidental to the purchase of a home, are a major hurdle faced by Jamaicans in their effort to acquire a home.
The approximate on a home is fifteen per cent of the purchase price, which many home buyers find exceeding ly difficult to accumulate.

price, which can be insured under the Act, up to a maximum of ninety-seven cent, would allow mortgage companies underwriting.
to use a higher loan to value ratio in their increase in the percentage of the purchase amount required The proposed for deposits per The Jamaica Mortgage Bank which administers the Mortgage Insurance Fund on behalf of the Govemm ent of Jamaica, envisages in the percentage, home buyers will be able to access a larger mortgage loan and that as a result of this increase large amount that would be required as a deposit.
on new entrants to the workforce, new professionals, would therefore reduce,the This will impact particularly public sector workers and others who have stable jobs and have qualified for mortgages and can afford the monthly mortgage repayments, but who do not have significant savings to cover a large deposit.

This increase in the percentage will also create an opportunity for these homes earlier, persons, and give them a longer period to pay off the mortgage over their working lives.
who are unable to afford the standard deposit, to acquire This Bill, therefore, seeks to amend the Mortgage Insurance Act to allow for- (a) an increase from 90 per cent to 97 per cent, the "percentage of the appraised insurance is being granted; and value of the property on which mortgage indemnity (b) the varying of the percentage way of ministerial order, subject to affirma tive resolution.
of the appraised value to be done by Minister of OMARDAVIES Transport, Works and Housing -------------------- --------------- .....

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 .... SECI10N 4 OF tHE PRINCIPAL ACT WInCH ITPROPOSEDTOAMEND 4.-(1) A loan is insurable under this Act if- (a) it was made by an approved lender to a person (in this Act called the "borrower") in order that the borrower may- (b) it was for the aggregate of- (i) 90 per centum of the appraised value.
or any part thereof; and (n) the amount of the insurance fee payable in respect of the loan; and (4) The Minister may from time to time prescribe variations in respect of the percentages in section 5.
(1) or or the amount specified in paragraph (b) of subsection SECTION 5 OF tHE PRINCIPAL ACT WInCH IT IS PROPOSED TO AMEND 5.-(1) An insurance fee of 2per cenJum or such other prescribed percentage of the amount of any loan to be insured under this Act shall be paid by the lender to the Bank but may be charged to the borrower and collected the borrower a such times and in such manner as may be agreed between the by the lender from borrower and the lender; and different rates may be charged for different categories of loans.
SECTION 14 OF tHE PRINCIPAL ACT WInCH IT IS PROPOSED TO AMEND 14.-(1) (2) If the amount received by the Bank pursuant to subsection sufficient to defray the expenses any year the income of the Bank for that year may be supplemented- of the Bank in the administration (1) is not of this Act in (a) by withdrawals from the Mortgage Insurance Fund not exceeding fifty per centum of the return on ivestments and assets of the Fund for that year; and ... Ill!

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A BILL ENITILED AN ACT to Amend the Mortgage Insurance Act.

As passed io the Hooourable House of Representatives.

PRINlED BY lAMA1CA PIUNfING SIlIMCIlS (1992) Lm •• (OOVI!RNMENT PR.IN'I1!Il.ll) DUXl!

S1'RI!ET.

ItINOS1'ON.

lAMAICA.

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