Scotia Bank will offer its Virgin Islands customers with balloon mortgages the opportunity to change to a 30-year fixed rate mortgage, according to Government House.
Lt. Gov. Osbert Potter called a meeting of the V.I. Banking Board Monday to hear from Scotiabank officials their responses to questions from the Banking Board and the Division of Banking and Insurance on actions Scotia is taking to work with Virgin Islanders who have balloon mortgages that have expired or will soon expire.
A balloon mortgage starts at one, low rate, with low payments lasting for a set period of time, after which the interest rate – and monthly payment – go up dramatically, or "balloon."
Scotia Bank said it is offering a flexible-loan modification program for its balloon mortgage customers with no loan origination fee. It will offer a 30-year fixed rate mortgage for customers whose balloon mortgages have expired.
No adjustable rate mortgages will be offered.
According to Government House, Scotia Bank will send out written notices to notify balloon mortgage customers that the period for loan modification has now been extended to Sept. 30. It will hold community meetings on the balloon mortgage loan modification process from 5:30 p.m. to 6:30 p.m. Wednesday on St. Thomas at the Small Business Development Center in Nisky Center, and March 25 on St. Croix at Scotiabank’s Sunny Isle Branch.
Those interested can RSVP for either meeting by calling 1-340-774-2646.
The board voted unanimously Monday to ask Scotia Bank to submit monthly progress reports on the status of loan modifications beginning March 31.