Eastern Caribbean Home Mortgage Bank (ECHMB) is an independent, privately managed mortgage bank whose primary function is to buy and sell mortgage loans so as to provide more liquidity to the Primary Lenders (including Building and Loan Societies, Commercial Banks, Credit Unions, Development Banks, Insurance Companies) originating such loans and to increase their capacity to make additional mortgage loans. The main objectives of the Bank are:
i. to develop and maintain an organized secondary mortgage market so as to increase the affordability and availability of mortgage credit and the liquidity and flexibility of Primary Lenders originating mortgages in the Member Territories;
ii. to contribute to the mobilization of long-term savings and for investment in housing;
iii. to support the development of a system of housing finance and provide leadership in the housing and home finance industry;
iv. to promote the growth and development of the money and capital markets;
v. to improve underwriting practices and efficiency in processing mortgages and to promote services and benefits related to such mortgages; and
vi. to raise building standards for residential mortgages by insisting that PrimaryLenders ensure that building codes and construction standards are rigidly adhered to.
The Bank seeks to achieve its objectives by offering purchase commitments to other Primary Lenders engaged in originating residential mortgage loans. Loans purchased in accordance with such commitments may be held in portfolio or resold to other Primary Lenders. The Bank does not service the loans, which it purchases but contracts with the Primary Lender or another such institution, for the collection of payments and performance of other servicing tasks. The Bank simultaneously seeks to contribute to the growth and development of the money and capital markets through sizeable and frequent offerings of high quality investment instruments to finance its operations.
