Imbert: Trinidad and Tobago Mortgage Bank to help citizens 'own their castles'

AFTER more than a decade, the merger between the Trinidad and Tobago Mortgage Finance Company Ltd (TTMF) and the Home Mortgage Bank (HMB) is complete, giving rise to a new company – TT Mortgage Bank (TTMB).

Finance Minister Colm Imbert believes this is a "significant milestone" in making housing more affordable, and to help citizens become "proud owners of their own castles" instead of renting.

The launch was held in the evening on March 20 at the Hyatt Regency, Port of Spain. Its theme was Anti-Gravity.

It was a grand affair, with some even saying they felt as though they were attending the launch of a major technological advancement.

The merger was first proposed by then finance minister Winston Dookeran in 2012 during the budget presentation. And in 2021, a decision was made to proceed with the merger.

It was officially completed on January 17, 2024, with the TTMF buying 100 per cent of the shares of HMB from the NIB (National Insurance Board).

Imbert said he knows there is a "big gap" between housing demand and supply, but: "We cannot and will not just bemoan this limitation."

He said the government is committed to finding solutions, and the merger is one of them.

He added that collaboration between the TTMF and the HMB began in 2017, and since then, they have provided $3.4 billion in home acquisition and improvement loans.

The TTMB, he said, will "provide richer, caring, relationship-driven services, expand the funding base to lower cost options and drive sustainability."

He said it is the action of a "serious government" set to enhance Trinidad and Tobago's economic outlook.

But he sought to make it clear that the merger was not done because one company was weaker than the other.

"Usually, when one hears news of a merger, it is generally perceived as either a hostile takeover of a weaker company or two companies uniting to evade bankruptcy or permanent closure.

"I can assure you that is not the case in this scenario. The new TTMB aims to generate value far beyond what either organisation could have achieved on a standalone basis."

He then proceeded to explain in "layman’s language.

"The merger will now give the TTMB access to $2 billion in low-cost funds. This will reduce the cost of borrowing for TTMB from six per cent – the market rate – to three per cent, thus allowing TTMB to significantly reduce its expenses and ultimately reduce the cost of mortgage lending for low- and middle-income earners."

TTMB chairman Patrick Ferreira said the theme Anti-Gravity was chosen because the company will "become the propulsion that will keep us going to new heights, always upwards.

"The future of TTMB is up."

He said there will be a lot of focus on growing revenue and profitability, while creating value for key stakeholders.

"(It) will realign and develop its people and organisation to enhance business capabilities, skills and competencies."

He added that the TTMB will pursue further opportunities to partner with regional and international agencies.

"TTMB is now poised to be a more significant player in the financial services sector."