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One of the main objectives of the Bank is to
develop an active secondary mortgage market. From 1972-1977 the Bank was
actively engaged in the secondary mortgage market operations. The Bank
purchased from approved seller/services (institutions approved to sell
mortgages to the Bank) the entire loan balances with respect to specific
mortgages.
The transactions relating to such purchases
were done on the basis of the auction system.
The Mortgage Auction
System - How It Worked
Periodically (usually would then submit its
bid at a specified yield in a sealed envelope on or before the closing date
‘of the invitation of offer’ to purchase the mortgages. Following the
deadline date the allotment committee of the Bank met and determined which
offers would be accepted. Acceptances were based on the highest yield
offered in terms of the minimum acceptable yield established by the Bank
immediately before the opening of the tenders. The JMB reserved the right to
accept or decline any offer, in whole or in part, at its sole discretion.
After being advised that the Bank accepted
its tender, the seller/service would deliver the corresponding mortgages to
the Bank within a 45 day period.
Approved Seller /
Services
These were financial institutions that were
approved to sell mortgages loans to the Bank. The institutions continued to
service the loan accounts on behalf of the Bank after the completion of
sale.
The approved institutions were:
Building Societies
- Victoria Mutual Building Society
- Jamaica National Building Society
- Jamaica Savings & Loan Building
Society
- Jamaica Permanent Building Society
- St. Thomas Mutual Building Society
- Northern United Benefit Building Society
Commercial Banks
- Bank of Nova Scotia (Ja.) Limited
- First National City Bank
- Jamaica Citizens Bank
- First National Bank of Chicago (Ja.)
Limited (Servicer)
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