By AVA TURNQUEST Tribune Staff Reporter aturnquest@tribunemedia.net REVISIONS to the Housing Act may be the next step in the government's bid to ensure the Bahamas Mortgage Corporation can meet debt obligations over the next two decades. As the corporation struggles with a high delinquency rate, BMC Chairman Dr Duane Sands said officials are now considering how they can utilize the Mortgage Insurance Fund without necessitating mass foreclosures. Legislation currently prohibits use of the fund unless vacant possession has been granted, thus necessitating foreclosure. Dr Sands said: "We cannot default on our debt obligations, which are substantial. "The government is looking at humane options, and is considering the various options to access the funds in the mortgage insurance fund, which are legal. Right now, the only way is if we foreclose and obtain vacant possession." Nearly $100m worth of bonds are due between the 2020 and 2030 period, and the corporation faces $35m in bond associated costs for the year ending June 2012, Dr Sands said. "This does not include any government housing projects, so what we have to do is to be very judicious about spending and expenses and also ensure that the repayments are optimised. "If you're spending 35 million just in bond sureties," said Dr Sands, "sinking contributions, and bond interest, then clearly that doesn't leave anything for housing projects, for operating expenses, capital development." He added: "It becomes critically important that we exercise all options available to ensure that the BMC continues to be a viable solvent entity, to do what we are mandated to do." Ideally, the corporation should be generating enough revenue on repayments to run its operations as well as the service of bond associated expenses. However, Dr Sands said that despite ongoing fiscal reform the BMC will not be able to meet expenses by 2021 given the current rate of collections. "We understand the issues," he said, "we understand the complexity of the problems, the magnitude, and we intend to see to it that they are fixed. It's going to require that we make some tough decisions that will engender discussion, debate, and some people are going to support it and some are not going to like it."