The Jamaica Mortgage Bank (JMB) is working to reduce its stock of non-performing loans which made up between 68 and 28-percent of its total portfolio between 2010 and 2016.
In a report on the bank, the Auditor General questioned what she called a deviation from policy along with weaknesses in monitoring and supervising non-performing loans.
Speaking at yesterday’s sitting of Parliament’s Public Accounts Committee, PAC, JMB General Manager, Courtney Wynter, says the issues are being addressed.
In her report, the Auditor General says that roughly 28-percent of the JMB’s loans are non-performing as at 2016.
Despite seeing a reduction from the $1.5-billion in 2010, the Auditor General still feels the value is too high.
This formed only part of the concerns as outlined by Acting Auditor General, Delores Linton Williams at yesterday’s PAC meeting.
The Auditor General says the continued high level of non-performing loans suggests the JMB is not efficiently managing its pool of loanable funds.
The primary function of the JMB is to mobilize loans for on-lending to public and private sector housing developers and other lending institutions.
The Auditor General says the non-performing portfolio is undermining the ability of the JMB to fulfil this mandate.
However, JMB General Manager, Courtney Wynter says a lot of work has been done in reducing the non-performing portfolio over the years.
He says the bank’s policy has also been revised to look at areas where they believe the most risk exists.
Mr. Williams says the changes have resulted in significant reductions and is expected to bring the stock of non-performing loans down even further.