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Scotiabank Offering Loan Modification, Fixed Rate Mortgage To Balloon Mortgage Customers

Scotiabank officials met with banking board members and the Division of Banking and Insurance Monday to report on actions the bank is taking to accommodate Virgin Islanders with balloon mortgages that have already expired in 2o15 or will soon expire. The bank discontinued its balloon mortgage program in 2010. These mortgages mature every five years and is subject to modification, or can be changed to another mortgage product, such as an adjustable rate mortgage or a fixed-rate mortgage. Scotiabank, at the request of the board and the division, provided the following steps being implemented to assist balloon mortgage customers in transitioning from the product. The bank: Is offering a flexible loan modification program for its balloon mortgage customers with no loan origination fee. An appraisal will be required only for loan amounts in excess of $250,000. Will offer a 30-year Fixed Rate Mortgage for customers whose balloon mortgages have expired. No Adjustable Rate Mortgages (ARM)...