Banco Popular receives 127,000 loan moratorium requests – news is my business
Popular Inc. CEO Ignacio lvarez.
Banco Popular de Puerto Rico has received a total of 127,000 moratorium applications, split between auto, personal and mortgage loans, Popular Inc. CEO Ignacio lvarez confirmed.
Of that number, 100,000 are in its own portfolio, and the remaining 27,000 are mortgages held by third parties such as Fannie Mae, Freddie Mac and the Federal Housing Administration that the financial institution serves.
In a conference call with members of the Puerto Rican media, lvarez said the bank processed 68% of requests, saying call volume stabilized after several busy weeks after the island passed. in lockdown mode on March 16.
He broke down the claims by category, saying claims for auto loan moratoria reached 50,786, or 25 percent of the bank’s portfolio. Commercial loans reached 3,646, or 17% of the bank’s portfolio. Regarding mortgages, the bank received 11,941 applications, or 23% of Popular’s total portfolio.
Regarding credit cards and personal loans, lvarez said Popular filed 34,666 applications, representing 6% of the bank’s portfolio. There was no breakdown for the 27,000 third party loans to specify how many belong to which lender.
On Thursday, Popular Inc. reported net income of $ 34.3 million in the first quarter of 2020 ended March 31, compared to net income of $ 166.8 million in the fourth quarter of 2019. First quarter results “reflect the impact of adopting the current expected credit loss (“CECL”) accounting standard, ”he said.
As for the US Small Business Administration’s Paycheck Protection Program initiative, Popular has submitted more than $ 1.2 billion in loans, representing more than 15,000 small and medium-sized businesses on the island.
So far, the federal agency has approved more than $ 819 million of that amount, he said.
“We have devoted a lot of time to the PPP program. The first round was complicated, the rules changed, the system was hard to learn, but we learned and now it’s going well, ”he said, noting that the majority of local loans will be under 150. $ 000, but the average will be $ 75,000. .
“So we reach a lot of small businesses. Most people who apply will get the loan if they qualify. Money is better managed, ”he said.
As for how it handles the COVID-19 emergency, Popular operates 122 branches in Puerto Rico – for limited hours and mostly through road windows – seven in the U.S. Virgin Islands and 11 in South Florida.
The bank has waived or refunded certain fees, temporarily suspended foreclosures, and is not reporting payment deferrals to credit bureaus.
“We have also pledged over $ 1 million to support COVID-19 emergency relief to nonprofits and healthcare providers. I am deeply grateful to our colleagues for the effort, commitment and bravery shown under very difficult circumstances, ”said lvarez.