Gumbs moves to reactivate Mortgage Guarantee Fund

GREAT BAY--In parallel with the new Housing Policy (see related story), Minister of VROMI, Patrice Gumbs is moving to reactivate St. Maarten’s Mortgage Guarantee Fund, originally established in 2000. The fund is intended to support first time homebuyers who face barriers to entering the housing market. During its initial period of operation, the fund successfully issued guarantees to first time buyers, with zero defaults recorded.

A committee has been appointed to guide the reactivation of the Fund, consisting of:

• Mr. Ronald Halman, member of the original fund and experienced mortgage financier

• Mr. Christian Grannum, Financial and Operational Expert

• Ms. Raitza Naraine, Head of VROMI Policy Department and project focal point

The committee was convened in January 2025 and submitted a work plan in August to the Minister of VROMI, identifying key interventions required to bring the fund back into operation.

“Every additional adequate home brings us closer to our goal,” concluded the Minister. “With the housing policy and the reactivation of the Mortgage Guarantee Fund, we are not just planning, we are building St. Maarten’s future.”

The Minister will formally submit the Housing Policy to Parliament and will request a meeting in the first quarter of 2026 to present a comprehensive implementation agenda for both the policy and the Mortgage Guarantee Fund.

A mortgage guarantee fund is a financial tool that helps first time or lower income homebuyers qualify for a mortgage by sharing part of the risk with the bank. Instead of the bank carrying the full loss if a borrower cannot repay, the fund guarantees a portion of the loan, which can make lenders more willing to approve mortgages with smaller down payments or for clients who would otherwise be seen as too risky.

In practice, the fund sets clear criteria for who qualifies, under what conditions guarantees are given, and how claims are handled if repayments fail. Its main task is to improve access to homeownership in a controlled way, protect the financial sector from excessive risk, and reduce the chances that a temporary setback for a family results in forced sale or foreclosure, all while keeping oversight on how public or pooled resources are used.

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