The Development Bank of American Samoa is trying to collect a total of $4 million in write off loans which were on the bank’s portfolio before the current management took over.
Write off loans are those which the bank is not charging any interest.
DBAS President Ruth Matagi-Faatili gave a report on the bank’s loans portfolio when she appeared at a hearing of the House Commerce and Economic Development Committee on Monday.
She said a division of the bank called loan recovery is collecting payments from these write off loans.
As of June DBAS’ total loan portfolio was $20.5 million.
Asked about the delinquency rate, Matagi Faatili said loans which are 90 days over due total $861,000 and make up 5% of the loans.
Loans which are 120 days over due total $1.5 million and account for 18% of total loans.
Tuala-uta Representative Larry Sanitoa said $4 million in write off loans is quite substantial.
He said that many families in his district of Tuala-uta need financial assistance to repair homes and contents damaged by constant flooding. He asked the DBAS president if the HUD loan program or any other loan source was available for affected families to apply to.
Matagi-Fa’atili said there’s been an amendment to the HUD loan program to allow loans for home repairs and there’s also the DIRECT loan program, that can provide loans of this nature.
Sanitoa reminded the bank president that DBAS is required by law to submit its audit report to the Fono in March of each year, and pointed out that its been awhile since he’s seen an audit report for DBAS,