Issued by: Ministry of Housing
5 February 1997
Housing Minister Sankie Mthembi-Mahanyele today announced that a task team of bankers and developers, convened by the Department of Housing, will endeavour to resolve controversy on issues relating to mortgage lending criteria.
This follows a meeting held yesterday (Tuesday, February 4) to clarify issues relating to mortgage lending criteria and the affordable housing market which were reported in the press in early January. At the time, Mthembi-Mahanyele announced she would call a meeting of stakeholders to discuss the matter.
Participants in the meeting yesterday included the Department of Housing, Department of Public Service and Administration, Department of Finance, Association of Mortgage Lenders. South African Residential Developers Association, Mortgage Indemnity Fund, Building Industries Federation of South Africa, National Homebuilders Registration Council, the National Housing Finance Corporation and the Home Loan Guarantee Company.
"The meeting addressed a range of issues which have the potential to impact on the rate of delivery in the lower-income housing market," she says, "The participants agreed on the need for the introduction of a fair and practical package to address the respective concerns of government, the developers and the banks The task team is to address the issues of;
"I am very pleased with the progress made so far and I will endeavour to ensure that the Task Team's work will be completed as soon as possible in order to provide longer-term certainty to the housing sector. It is vital that we move away from the dangers of stops and starts in the housing delivery as ultimately, it will simply impede delivery," she says.
"In particular, I am hoping the Task Team will identify new approaches and innovation from both banks and developers so that the housing needs of the poorest of our people can be addressed at scale."