| || || Sharma, Raj K.|
| || || Causes of problem loans in housing sector in Fiji : a case study.|
Author:Sharma, Raj K.
Institution: University of the South Pacific.
Subject: Housing Authorithy Fiji, Mortgage loans -- Social aspects -- Fiji, Public housing -- Social aspects -- Fiji
Call No.: pac HG 2040 .5 .F5 S532 2012
Copyright:60-80% of this thesis may be copied without the authors written permission
Abstract: This paper identifies factors that contribute towards problem loans in the mortgage financing sector of Fiji and in particular a public institution, the Housing Authority of Fiji (HAF). It starts with the importance of housing needs at global and regional levels and subsequently looks at the housing needs in Fiji in the context of the current socioeconomic problems. The paper provides a comparative analysis of the current procedures and practices of the HAF with some of the best practices and international standards for housing or real estate financing. It also looks at the performance results of the HAF and compares them with one other licensed financial institution based on certain comparative ratios. To establish the strength and opportunities of Fiji’s housing market, the paper evaluates the availability and affordability of mortgage finances by non-banking financial institutions (NBFI) in Fiji. It considers the impact of pricing, individual lending policies, competition and marketing strategies and other external and internal variables that contribute towards problem loans. It is essential that such study is carried out to avoid continued mortgagee sales, enforcements and bankruptcies, not only for sustainable quality mortgage portfolio growth, but also to preclude any social, economic and legal predicaments emanating from such activities. The paper provides a comprehensive literature on the recent Global Financial Crisis (GFC), its origination, the causes, implications, recovery process and most important the lessons learnt. After assessing all the available information, the paper finally highlights the factors that largely contribute towards problem loans and suggests ways to prevent them. In doing so, the paper also acknowledges the efforts of the state and other state agencies in promoting the home ownership programs despite the current limitations. Conversely, it makes various articulations and suggestions to foster the National Housing Policy that the stakeholders may consider in the formulation and implementation programs. vi Findings and analysis indicate a range of recommendations for the best credit practice in Fiji.