Mortgage Warehouse Funding Limited has disbursed N88.5m to TrustBond Mortgage Bank Plc.
The MWFL said the disbursement was under its N20bn asset-backed commercial paper programme.
It added that it was its first series of mortgages to Trustbond as one of its member mortgage banks.
“A total of four mortgages were pre-financed to the tune of N88.5m and funds have been disbursed to TrustBond Mortgage Bank Plc. This short-term pre-financing vehicle will enable the mortgage bank to begin to expand its origination capacity,” the MWFL said in a statement on Friday.
It added that it would ensure the availability of mortgages for intending homeowners in Nigeria and help with the steady growth of the mortgage subsector in the housing market.
The MWFL is sponsored by several mortgage banks, the Mortgage Banking Association of Nigeria, the Nigeria Mortgage Refinancing Company Plc, Lion’s Head Global Partners through the African Local Currency Bond Fund as Initial Subordinated Note Subscribers, DLM Advisory Partners Limited and CitiHomes Finance Company Limited, a CBN-licensed financial institution.
It is expected to support the sector by providing short-term up-front funding to its member mortgage banks to enable them to originate new eligible mortgage loans strictly based on the Mortgage Subsector Uniform Underwriting Standards.
The MWFL Chairman, Mr Sonnie Ayere, was quoted to have said it was gratifying to finally see the MWFL fund its first bank at a holding duration cost of 9.59 per cent.
He said, “Like everything else, proof of concept is most important and that hurdle has now been scaled.
“The conduit is now looking forward to funding more of its member banks and giving them the firepower to go out there with a 100 per cent confidence to give mortgage financing to Nigerian citizens wishing to get on to the property ladder.”
The President, MBAN, Mr Niyi Akinlusi, was also quoted to have said the successful completion of series 1 funding by MWFL with pre-finance of TrustBond’s mortgages of over N88.5m was very significant for the mortgage industry and the larger economy. I
He explained that it was the last piece of the jigsaw puzzle in connecting the mortgage industry to the money market after linking the mortgage market to the capital market through the bond issuance activities of the NMRC in the capital market.
“This signposts the beginning of continuous flow of liquidity from the money market to the mortgage industry and another major initiative in making Nigerians homeowners and reducing the national housing deficit of over 20 million units,” he said.
The MWFL, according to stakeholders, is designed to complement the NMRC which is licensed to provide long-term funding for the mortgage sector via secondary refinancing.