Halkalı Halı Yıkama Beylikdüzü Halı Yıkama Bahçeşehir Halı Yıkama seocu

CBN Removes Cap On Interest Rate For Mortgage Finance

The Central Bank of Nigeria (CBN) on Friday removed the cap on interest rates for mortgage finance by the Primary Mortgage Banks (PMBs), effective September 9, 2019.

In a circular to all other financial institutions in the country, dated September 5 and signed by Kevin Amugo, director, financial policy and regulation department, the CBN said the “subject to a maximum of MPR + 5%” is no longer applicable.

The CBN in 2017, issued the guide to banks and other financial institutions, to moderate charges on various products and services offered by banks and other financial institutions in Nigeria.

Consequently, the CBN said it’s attention has been drawn to some implementation challenges in respect of part 2 section 2.1.3 (mortgage finance) in respect of the maximum cap of MPR +5% placed on mortgage finance rates.

The CBN after due consideration of the concerns of stakeholders, amended the part 2(A and B): interest rate and lending fees subsection 2.1.3 mortgage finance to read “negotiable”.
The measure is part of efforts to boost home ownership in a country where only 50,000 people out of almost 200 million have housing finance.

The government faces a daunting challenge to close a shortage of 17 million houses.

Nigeria has no formalized title-deeds registry and most homes consist of informal structures on land passed down through generations. Rapid urbanization is also causing a proliferation of slums and shanty towns.

Nigeria’s mortgage industry is small, with the equivalent of $260 million in loans, compared with more than $90 billion for South Africa.

Nigeria’s total mortgage debt to gross domestic product is estimated at 0.6 percent versus 2 percent in Ghana, according to the Nigeria Mortgage Refinance Corporation NMRC. In South Africa, that ratio is 20 percent, according to Moody’s Investors Service.

Source: Businessdayng

Mortgage Warehouse Disburses N88.5m to Trustbond

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.

Source: punchng

Dearth of Mortgage Products and Challenge of Homeownership

In most economies of the world, including Nigeria, housing is one of the major economic indicators that shows how well the economy is performing. The growth of the housing sector is buoyed by the existence of a functional mortgage system that offers mortgage products and services.

The immediate fall out of the banking sector consolidation in 2005 which saw the emergence of 25 ‘strong’ deposit banks, was the increase in the number of mortgage institutions set up mainly by these consolidated and recapitalized banks.

Almost all of these mortgage institutions were ‘doing well’, churning out mortgage products and services that enabled their customers buy or build houses, or renovate existing ones. There were also products that enabled customers to acquire home equipment and other consumer products.

But in the last decade, for a combination of factors and, sometimes, inexplicable reasons, most of these institutions and their products are no longer seen on the streets, which speaks much about Nigeria.

Nigeria, most times, exhibits what could be termed growth paradox. As the country progresses, many of the things that could be used to measure growth and development are either retrogressing or diminishing. And the country’s mortgage market comes handy as an example.

The banking sector consolidation and recapitalisation led to the evolution of a competitive business environment and a culture of efficiency and innovation among the operators.

Institutions had to develop this competitive spirit not only to remain in business but also to increase and make good returns on shareholders’ funds such that innovative ideas, especially in product origination, became the norm.

The market was awash with products, especially those that would enable consumers have easy access to homeownership. Some of the mortgage institutions took it a step higher with the creation of products that would enable property owners build wealth from their property and yet enjoy the comfort of such property.

The First City Monument Bank (FCMB)’s ‘Unlock your Cash’ and defunct Bank PHB’s ‘Home Owner’s Advantage’ readily come to mind here and these are the kind of products that consumers need today in the face of the crippling economic downturn.

Unlock Your Cash, a variant of the bank’s flagship mortgage product, ‘MyHome’ was one of the most popular refinance products in Nigerian mortgage market then. People who have worked hard to build or buy their homes had the opportunity of letting those homes work for them by releasing the funds commensurate to the value of the property towards meeting other life needs.

Some customers who had been forced in the past to borrow short tenured loans of 3 to 5 years had the opportunity, through this refinancing option, to access the product where the bank paid off the offending loan owed the financial institution and provided more manageable repayment amounts that eased customer’s cash flow through the bank’s longer tenor.

For existing home owners, the bank allowed them to unlock up to 70 percent of the value of the property if they lived in it and 60 percent if they didn’t. It also provided home owners the opportunity of registering their titles making their properties mobile and ensuring that they were working for them just like share certificates made stocks fluid.

“We have been able to offer long tenured loans to the Nigerian mortgage market. Our observation before we entered the market was that only short term loans were available, making mortgages very unaffordable to the average salary earner. Now, with a longer pay back period, repayments are more manageable, with the option of reducing one’s principal outstanding when his economy improves or even leveraging more funds as the property price appreciates”, Ladi Balogun, former GMD/CEO of the bank, explained.

Home Owners Advantage was a wealth building product that, by its name, gave advantage to homeowners to build wealth on such homes. The product was different from traditional mortgage financing in the sense that it allowed those who owned their homes and had legal titles to them, to raise finance out of their property for a fixed period. The finance they raised could be used to buy new assets or create new investments, grow their wealth and have a good life.

The foregoing are just a few examples of the kind of products that the mortgage market enjoyed in “those good years” and both home owners and those who wanted to own one enjoyed them. Today, several years after, there is hardly any mortgage product that gives that kind of advantages or opportunities these ones offered.

Most of the products in the market today are those that enable subscribers pay house rent or school fees, and they come with impossible conditions and at outrageous interest rates.

Consumers are insisting that mortgage products should be able to meet ds their needs.What obtains in the market presently are generally unaffordable and do not give any advantage to existing and prospective homeowners.

However, not too long ago, Safetrust Mortgage Bank, one of Nigeria’s leading primary mortgage banks (PMBs), offered small business, traders and professional firms what it called Safe Annual Rental Scheme (SARS) to enable them pay rent for their homes, shops and offices

The facility is for subscribers who have established business relationship with the bank for a minimum of six months while a fixed amount is saved monthly with the intention of taking twice their contribution for rent purposes.

The product which offers a maximum amount of N1.5 million, a repayment period of 9 months, attractive and competitive interest rate, is coming on the heels of the company’s call on federal government to put in place measures to ensure lower interest rate regime so as to support economic activities that will lead to sustained growth of the national economy.

Source: businessdayng

Here Are 10 Top US Mortgage Lenders of 2018

The Consumer Financial Protection Bureau released its annual data from the Home Mortgage Disclosure Act on Aug. 30 showing which lenders dominated 2018 and which ones fell behind the pack.

The 2018 HMDA reporting format changed significantly from 2017 – in particular, there were changes to how lenders reported open- and close-ended home equity loans.

HMDA data prepared by iEmergent, below, shows the nation’s top 10 lenders. The data includes originated loans for single-family 1- 4 units. It does not include manufactured homes, multifamily, home improvement loans or repurchases.

Here is the list of the originators that dominated the 2018 market by total volume of loans originated:

10. Flagstar Bank – $19.6 billion

Share of total origination volume: 1.1%

Rank in total number of loans: 11

Total number of loans: 73,087

9. Fairway Independent Mortgage – $24.9 billion

Share of total origination volume: 1.4%

Rank in total number of loans: 8

Total number of loans: 105,780

8. Caliber Home Loans – $29.1 billion

Share of total origination volume: 1.7%

Rank in total number of loans: 9

Total number of loans: 104,037

7. U.S. Bank – $29.5 billion

Share of total origination volume: 1.8%

Rank in total number of loans: 6

Total number of loans: 132,253

6. loanDepot – $32 billion

Share of total origination volume: 1.8%

Rank in total number of loans: 7

Total number of loans: 124,027

5. United Wholesale Mortgage – $41.6 billion

Share of total origination volume: 2.4%

Rank in total number of loans: 5

Total number of loans: 145,579

4. Bank of America – $55.2 billion

Share of total origination volume: 3.2%

Rank in total number of loans: 3

Total number of loans: 192,652

3. JPMorgan Chase – $57.7 billion

Share of total origination volume: 3.3%

Rank in total number of loans: 4

Total number of loans: 187,642

2. Quicken Loans – $81.4 billion

Share of total origination volume: 4.7%

Rank in total number of loans: 1

Total number of loans: 375,656

1. Wells Fargo – $83.4 billion

Share of total origination volume: 4.8%

Rank in total number of loans: 2

Total number of loans: 258,762

Source: housingwire

Why NMRC, FMBN and Family Homes Funds Must Partner Now

The Nigeria Mortgage Refinancing Company (NMRC), Federal Mortgage Bank (FMBN) and Family Homes Funds (FHF) are significant institutions in the drive towards affordable housing provision in Nigeria. Though saddled with distinct responsibilities, they are primarily set up for a singular objective, as already mentioned – affordable housing.

It is the believe of many stakeholders that one of the most important things necessary for scaling housing supply in Nigeria is for established institutions to collaborate more, learn from each other’s experiences and adapt to existential challenges.

The NMRC is a private sector-driven mortgage refinancing company with the public purpose of promoting home ownership for Nigerians while deepening the primary and secondary mortgage markets. Its vision is to be the dominant housing partner in Nigeria, with a mission to break down barriers to home ownership by providing liquidity, affordability, accessibility and stability to the housing market in Nigeria. FMBN is equally tasked with the responsibility of supplying the mortgage markets with sustainable liquidity for the advancement of home ownership among Nigerians anchored on mortgage financing. The Family Homes Funds is a federal government social housing scheme that invests in the structures to create the conditions for low to middle income earning families to secure their own homes and create jobs for hardworking Nigerians.

It is obvious that the three bodies perform very important roles for the development of Nigeria’s housing sector, and it is only right for them to identify urgent areas of cooperation and work on them. Of course this is already going on, but for the kind of housing deficit that we have in Nigeria, there is need for more synergy.

The Family Homes Funds has developed and continues to develop multiple affordable housing projects across the country, and has in the process collated a lot of data which it should make available to NMRC whom has on its own developed a Mortgage Market Information Portal (MMIP). NMRC has been in the forefront of driving housing market intelligence as a key area of activity and focus, and any collaboration from FHF and FMBN in this area will go a long way to deepen the data pool and aid project execution.

The NMRC MMIP portal is a decision-making tool that supports the growth of affordable housing and housing finance markets in Nigeria. The NMRC MMIP, is currently the repository for the National Real Estate Data Collation Programme making it a primal point of call for industry stakeholders seeking relevant and timely data on Nigeria’s housing sector.

There is a mismatch between the demand for housing and its supply in Nigeria. The demand out-weight the meagre supply, and the only way to meet demand with commensurate supply is for the stakeholders responding for the supply side to work closely, identify their greatest challenges and foster a harmonious and dependent working relationship.

Trump Moves to Send Mortgage Giants Back to Private Sector

 The Trump administration on Thursday unveiled a long-awaited plan to end federal control of two mortgage giants that had been bailed out by taxpayers during the 2008 financial crisis and return them to the private sector.

The administration’s 49 recommendations to overhaul America’s housing finance system are unlikely to find an eager audience in Congress, which has been deeply divided on the issue and is now consumed with other fights in the run-up to the 2020 elections.

But the proposal could accelerate the administration’s attempts to privatize the mortgage giants, Fannie Mae and Freddie Mac, which continue to play an outsize role in the housing market. Together, the two entities collectively backstop a little less than half of the nation’s $11 trillion mortgage market.

Fannie and Freddie do not make home loans. They buy mortgages from banks that originate them, then securitize them and sell those mortgage-backed securities to investors. That process is meant to reduce mortgage rates by spreading the risk of default and help underserved Americans buy homes.

Even before the crisis, the firms were controversial: They were publicly-traded companies viewed as having the implicit backing of the federal government. Critics said that allowed investors to profit from them while putting taxpayers on the hook for any trouble. Those fears came true in 2008.

When the national housing market began to crash in 2007, and mortgage defaults surged, losses piled up on Fannie and Freddie’s balance sheets. In 2008, the federal government placed the entities into a “conservatorship” — a sort of bankruptcy status run by the government, and pumped nearly $200 billion into them to help keep them solvent.

As the housing market began to recover, President Barack Obama proposed a plan to release the companies from conservatorship but failed to execute it. Members of Congress have also tried, and so far failed, to end government control of the entities.

The latest plan — released by the Treasury and Department of Housing and Urban Development — was ordered up by President Trump in the spring. It includes recommendations meant to limit the federal government’s role in the mortgage market and inject more private competition, which they say will bring down mortgage rates. Officials say it would promote affordable housing and protect taxpayers from bailing out Fannie and Freddie in the event of another housing crash.

But releasing Fannie Mae and Freddie Mac from their federal embrace has proved politically difficult, because the entities effectively subsidize the 30-year fixed-rate mortgages that are most popular among American home buyers. Affordable housing advocates have warned that returning the firms to the private market could threaten those mortgages or make them more expensive and more difficult to obtain for low-income home buyers.

“The administration says it is trying to save taxpayers from the risk of another future catastrophic meltdown, but it is essentially turning the system over to Wall Street,” said Nikitra Bailey, executive vice president of the Center for Responsible Lending.

In a nod to those concerns, administration officials insisted in a briefing on Thursday with reporters that their plans would create more competition in housing finance and would reduce costs for borrowers, not raise them.

While officials said the 30-year mortgage would be protected, the report suggested that such long-term mortgages could remain widely available without government support, or that “the United States could perhaps follow the lead of other countries” and shift toward other types of mortgages, like ones with variable rates.

The report went on to say that “stability in the housing finance system is crucial, and generally counsels in favor of preserving what works in the current system, including the longstanding support of the 30-year fixed-rate mortgage loan.”

To help preserve those traditional loans, the administration said it would support an effort by Congress to provide an explicit, but limited, federal guarantee for mortgage-backed securities, which underpin banks’ lending to home buyers.

Critics say such a move would allow another 2008-like situation to emerge with investors taking risks in the mortgage market and reaping rewards, but leaving taxpayers on the hook in the event of another housing crash.

“The bad part is the plan’s support for an explicit guarantee, which has the danger of expanding housing subsidies even further,” said John Berlau, a senior fellow at the Competitive Enterprise Institute. “I think that would ultimately expand government’s role in housing.”

How the plan’s goals would be met remain vague — for example, the proposal offered options for Fannie Mae and Freddie Mac to raise the capital they would need to go private, such as engaging in a stock offering, but it did not specify which options the administration prefers. Many are recommendations for congressional action that are unlikely to be enacted anytime soon.

Several are likely to draw condemnation from housing advocacy groups. Those include overhauling federal affordable housing requirements and setting restrictions that could discourage the companies from investing as heavily in mortgages for apartment buildings in areas like New York that have adopted rent-control laws. The administration says such laws impede housing development and the report calls upon regulators to revisit Fannie’s and Freddie’s standards for buying multifamily housing loans in rent-controlled areas, asserting that “scarce government subsidies should not be used to offset the adverse effects of these laws.”

Privatization could also bring a windfall for hedge funds and other investors that bought Fannie Mae and Freddie Mac stock after the crisis for pennies, then pushed the administration to hasten the process.

Some recommendations require congressional action, which could disappoint investors who had hoped the Trump administration would move quickly to bolster the companies’ financial cushion, then sell the government’s stakes in them. Treasury Secretary Steven Mnuchin, who has long advocated removing Fannie Mae and Freddie Mac from government control, has also said that he believes that they should be restructured in the context of broader housing finance legislation.

The proposal kicks other key decisions to the Federal Housing Finance Agency, an independent regulator led by a longtime champion of free-market competition in home lending, Mark A. Calabria.

Mr. Calabria has said repeatedly that he has the authority to start the process of returning Fannie Mae and Freddie Mac to private hands without Congress. In a recent interview, he said he expected to take steps this fall to allow the firms to begin building cash reserves by Jan. 1.]

Currently, the entities are required to send all profits to the Treasury Department, above a certain capital limit. Mr. Calabria said he expected that practice to end shortly, though the report did not explicitly call for that. He also said the process of returning Fannie Mae and Freddie Mac to private hands, including raising money from a possible stock offering, could take years.

“There’s a lot of things you need to exit,” he said. “You can’t just do those things over a weekend.”

Any proposal by the Trump administration to make major changes to housing finance laws will probably be met with deep skepticism from groups that have been critical of its effort to scale back government regulations meant to reduce racial, ethnic and income segregation in federally subsidized housing and development projects.

Ms. Bailey of the Center for Responsible Lending said that she feared the Trump administration’s plan would drive up the cost of mortgages for all borrowers. She said this would be particularly painful for rural residents, low- and moderate-income families and communities of color that are already struggling to find affordable housing.

Ms. Bailey said that higher mortgage costs could disrupt the housing market and the broader economy and that the administration should not forget the lessons of the financial crisis.

Congressional Democrats showed little appetite for the proposals. “President Trump’s housing plan will make mortgages more expensive and harder to get,” said Senator Sherrod Brown of Ohio, the top Democrat on the banking committee. “I’m urging the president: Make it easier for working people to buy or rent their homes, not harder.”

Source: nytimes

FMBN to Nigerians: Come And Access Mortgage to Own Homes

The Federal Mortgage Bank of Nigeria (FMBN), Federal Capital Territory (FCT) branch, has called on Nigerians to access their mortgage products through National Housing Fund (NHF) scheme.

Mrs Felicia Aningo, FMBN FCT Coordinator, made the disclosure during an awareness campaign in Abuja on Wednesday.

The News Agency of Nigeria (NAN) reports that the FMBN took the awareness campaign to markets, shopping malls and motor-parts within the FCT.

Aningo said that the bank was established to provide affordable mortgages to drive home ownership among Nigerians, particularly low and medium income earners through NHF.

According to her, Nigerian workers contribute 2.5 per cent of their monthly income to the NHF scheme.

She said a prospective home beneficiary was expected to make annual or monthly contribution over 15 years.

Aningo said that at the end of the contribution, if the applicant was not able to achieve his goal, the bank would pay back the money with interest.

She said that the move was imperative as government continued to make plans to help Nigerians own their own homes and also reduce housing deficit.

“The bank is working towards ensuring the fulfilment of the law, Act NO.3 of 1992, that stipulates that “All Nigerians in employment, weather self-employed or paid employment are required to contribute 2.5 per cent of their basic income to the fund,” Aningo said.

According to her, the scheme is under a simple procedure of registration, deduction of contributions at source.

Aningo said that cooperatives could also organise and access loans from the bank to provide affordable houses for members.

The products are NHF Mortgage Loan, Rent to Own, Home Renovation Loan, construction of homes, Estate Development Loan and many more.

In August the Minister of Works and Housing, Mr Babatunde Fashola, admonished FMBN to create more awareness on its several products aimed at ensuring affordable houses for Nigerians.

He said that the administration of President Muhammadu Buhari would focus on housing and consumer credit as a way of ensuring that Nigerians have affordable houses. (NAN)

What Mortgage Can do When Economy Totters

The question has always been asked if there is any role a functional mortgage system can play when an economy is in a downturn, and the ready answer which experts have always given is ‘yes’.

The Nigerian economy is having challenging times and one of the ways the managers of the economy want to approach the solution is through diversification. Diversification is a major economic discourse in the country today.

Agriculture and manufacturing come in handy as low hanging fruits. But little or no mention is made of mortgage, not even real estate which is the fulcrum around which the mortgage system revolves. This can only be surprising and thought-provoking in a country that seems to be groping in the dark for solution to its economic problems.

In advanced economies, the mortgage industry makes significant contribution to economic development. In Nigeria, this is not the case because no consideration is given to its potential. This lack of consideration accounts for why mortgage finance as a percentage of Gross Domestic Product (GDP), till date, remains as low at 0.5 percent, leaving it several steps behind other emerging markets such as Mexico, Malaysia and South Africa where mortgage contributions to GDP are as high as 10 percent, 25 percent and 29 percent respectively.

There is no-gain-saying that mortgage has all the potential to stimulate the economy, but for it to do that, all the obstacles to its growth have to be tackled. The relative ‘newness’ of the industry, lack of understanding of its dynamics and operational models by many Nigerians, and poor appreciation of the need and the ultimate benefit of keeping money in a mortgage bank are some of the militating factors.

Finance experts are of the view that a flourishing mortgage banking industry is an effective tool in the hands of the government as the industry will help in regulating the economy in the desired direction.

Presently, the Federal Government is talking about diversification of the economy to stir it away from the current challenges, but attention doesn’t seem to be paid to the mortgage sector. If government really wants to stimulate the economy, a reduction in the interest rate will be a master stroke as, all things being equal, more people will embrace mortgage loan to buy houses, leading to increased activities in the construction sector.

Because of the identified obstacles, many primary mortgage banks (PMBs) are going through very difficult times, such that some are still unable to meet up with the needed capital requirements in the industry. “If government pays a closer attention to the PMBs by removing some of the obstacles that they have such as the drawbacks of the Land Use Act of 1978 which essentially vests land ownership in the hands of the state governors; the right to easily foreclose on delinquent borrowers, ease of creating a legal mortgage and perfecting titles and the ease of falling back on their collateral to recover bad loan etc, this sector will surely improve tremendously,” a mortgage operator says.

The operator insists that until all these issues are resolved in a way that encourages the provider of capital, in this case the mortgage bank, the sector will not grow as desired.

It is hoped that when these obstacles are removed, the supplier of mortgage will allocate more funds towards the provision of home loans while home buyers will better appreciate the implication of prompt interest and capital repayments as well as ensure discipline on the part of the people.

Okika Ekwem, a US-based realtor, affirms that the capital base of the PMBs is inadequate. He however, dismissed the idea of a fixed capital base for mortgage institutions. “The idea that a mortgage institution should have a fixed base of, say N10 billion, is wrong because that amount is too meager; even N100 billion is also meager given the kind of projects they are to finance.

“The Federal Government needs to come in, look at what is happening in other civilised world and copy. These days, copying is no longer an act of deception but actually something that is done even in the civilised world”, he said.

In the civilised world, according to him, there is secondary market for real estate financing where commercial banks or individual brokerage banks lend money to people and thereafter sell the securitized certificate to the secondary market and come back again to lend to individuals.


Given the size of Nigeria as a mortgage market, the growth of this industry is possible if the Federal Mortgage Bank of Nigeria (FMBN) plays the role of a regulator while the federal government, through the Central Bank of Nigeria (CBN), should empower the PMBs more.

Arguably, the Nigerian mortgage industry needs more well established and well funded PMBs. Experts are proposing about 10 in each state of the federation. Meckson Innocent Okoro, an estate manager, explains that this is to discourage the concentration of these institutions only in urban centres.

“When this is done, access to housing finance will be increased; the PMBs must be positioned to champion the whole issue of affordable or social housing for the low income earners in the country. Anything the country wants to do without a functional mortgage system that can guarantee homeownership for a good number of people will not succeed,” he reasons.

Continuing, he says, “We are talking about housing which is capital intensive and so must have capable institutions to finance it; increased homeownership will, one way or another, contribute to the country’s GDP which translates to economic growth.”

All these actions, if taken, will generate activities in the economy. Jobs will be created and through them, more people will earn income, leading to the growth of both the GDP and the economy.

Source: businessdayng

FMBN Tasks FG to Implement N500b Recapitalisation

The managing director of Federal Mortgage Bank of Nigeria, Arc Ahmed Dangiwa has appealed to the Federal Government to recapitalise the Federal Mortgage Bank of Nigeria to the tune of N500b as recommended by the National Council on Housing and Urban Development in 2017 and 2018 to provide homes through affordable mortgage financing.

He made it known when giving his goodwill message at the opening ceremony of the 30th anniversary of Archibuilt 2019 Exposition that took place at international conference center, Abuja on Thursday with the theme ” Driving Nigerian Architecture Through Technology”.

Dangiwa said that the recapitalisation of FMBN will be a game changer for the country’s mortgage finance sector and ordinarily Nigerians desiring to own their homes through affordable mortgage financing.

He noted that FMBN is placing a leading role to address housing deficit in the country through its housing mortgage finance. “there is no player in the financial market that offers mortgage rates lower than what FMBN offers”.

“Despite this, we have continued to lower the bar to ensure more Nigerians have access to mortgage loan of 5m and below with a reduction to 10percent flat rate for loan above 5m to 15m from the initial 20 percent and 30 percent”.

According to him, “FMBN has developed Rent to Own mortgage product that requires no down payment aside from the capacity to make monthly repayment which is indisputable that no other institution provide affordable mortgage financing for low and middle income earners comparable to FMBN and the achievement of the vision to recapitalise the bank”.

Furthermore, he commended the Archibuilt for their enormous contribution to Nigeria’ housing and construction sector.

He said the Nigerian institute of Architects has a key role to play in tackling the issue of building collapse across the states of the Nigerian Federation by continue to engage the government and policy makers on the enthronement of essential regulations to guide all facets of the operations in the sectors and eliminate quackery.

He concluded that the FMBN will continue to partner with Archibuilt towards achieving the nation’s dream where everyone that deserves a home, get one.

Source: nigeriannewsdirect

Mega PMB on the Way as Shareholders Approve Trustbond, First Mortgages Merger

A mega primary mortgage bank (PMB) that is expected to introduce a major boost in the Nigerian mortgage market emerged Wednesday as the shareholders of Trustbond Mortgage Bank Plc today approved the merger of the bank with First Mortgages Limited.

Both Trustbond and First Mortgages are major players in the Nigerian mortgage market. Trust bond is a first generation primary mortgage bank operating with national licence, meaning that its capital base is in excess of N5 billion.

First Bank Mortgages is also an old generation PMB incorporated in 2003 by the CBN to carry out mortgage business in 2004.

This proposed merger of the two banks, which signposts what is to be expected in the struggling mortgage market in the months and years ahead, will be birthing a bigger and stronger primary mortgage bank that may change the narrative in the mortgage industry.

The shareholders at a Court-Ordered Meeting in Lagos on Wednesday approved the merger as proposed by the management of the bank.

They also approved the transfer of the assets and liabilities of First Mortgages to Trustbond Mortgages; the change of the name of the bank to First Trust Mortgage Bank, and to put the share capital of Trustbond at four shares to 23 shares of First Mortgages.

Though the shareholders welcomed the merger as a good move, they had their concerns regarding what becomes of the staff of their bank and their shareholding.

Etiwe Uwa, chairman of the bank, assured that there would be no job losses, adding that at four shares to 23 of First Mortgages, they were the gainers.

Uwa assured further that the merger would come with immense benefits, including value addition/creation, cost efficiency and innovative technology.

He explained that the new bank would be repositioned through continuous improvement in advanced cutting edge technology that will enhance access to innovative mortgage bank products.

Source: Businesdayng

japon seks - ajans seks - esmer seks - public agent seks - seks hikayeleri - sohbet numaraları
mersin escort | mersin escort
Translate »
escort sakarya escort edirne escort kayseri escort konya escort ısparta escort bornova
Kıbrıs gece kulüpleri