VROMI Minister establishes committee to relaunch Mortgage Guarantee Fund

GREAT BAY--The Minister of Public Housing, Spatial Planning, Environment and Infrastructure (VROMI) has formally established a Mortgage Guarantee Fund Restart Committee as part of government’s continued efforts to improve access to homeownership for first-time buyers in St. Maarten.

The ministerial decision recognizes that access to affordable and responsible housing finance is a key pillar of public housing policy and broader socio-economic stability. It also notes that commercial banks typically finance only up to approximately 80 percent of a property’s market value, creating a major obstacle for many otherwise creditworthy first-time homebuyers seeking to enter the housing market.

According to the decision, published in the National Gazette, the Mortgage Guarantee Fund is intended to serve as a targeted credit enhancement instrument through guarantees, rather than a direct subsidy. The reintroduction of such a mechanism is also in line with the Government of St. Maarten’s Housing Policy 2025–2035.

The decision further notes that St. Maarten previously operated a Mortgage Guarantee Fund which, based on available information, functioned without recorded defaults. It also points to successful reference models elsewhere in the Kingdom, including Curaçao’s Fondo di Garantia pa Bibienda Korsou, while emphasizing that any restart in St. Maarten must be supported by a prudent preparatory process with clear fiscal, legal, and risk safeguards.

To guide that process, the Mortgage Guarantee Fund Restart Committee has been appointed with a mandate to design, operationalize, and prepare the relaunch of the fund as a fiscally responsible instrument to facilitate access to homeownership for first-time buyers.

The committee members appointed are Mr. Ronald Halman, Mr. Christian Grannum, and Ms. Raitza Narain.

Under its mandate, the committee will assess the current legal and operational status of the existing Mortgage Guarantee Fund and determine whether it can be utilized, amended, or whether a new fund must be established. The committee will also develop policy objectives, operational recommendations, eligibility criteria, guarantee coverage, risk controls, governance structures, underwriting standards, pricing structures, portfolio limits, and reporting frameworks.

In addition, the committee will engage relevant stakeholders, including financial institutions, regulators, accounting firms, and public sector entities, and will identify and draft the legal and regulatory instruments needed to support implementation. It will also assess the financial, budgetary, and contingent liability implications of different design options and prepare phased implementation recommendations for the minister.

The ministerial decision makes clear that the committee’s role is strictly advisory. The committee is not authorized to commit, allocate, or disburse public funds, issue guarantees, approve mortgage applications, enter into binding agreements on behalf of the country, or implement any proposal without the required approvals.

At the conclusion of its work, the committee is expected to submit a comprehensive advisory report to the minister, including design options, a policy framework, a recommended course of action, draft legal and regulatory instruments, and a phased implementation plan with timelines and stakeholder engagement steps.

The committee will report directly to the Minister of VROMI and will remain in place for a period of 12 months from the date of issuance of the decision, unless extended or revoked earlier.

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