FMBN’s N9b lifeline for 1,244 credit facilities

The nation reports that after  posting N2.7 billion as its operating surplus at the close of last year, the Federal Mortgage Bank of Nigeria (FMBN) has secured the Federal Government’s nod to boost affordable housing financing.

The Acting Managing Director, Richard Esin highlighted the bank’s business performance  at a review session on FMBN’s operations last year.

He said the bank got a N9 billion approval of Power, Works & Housing Minister, Mr. Babatunde Fashola for the creation of 1,244 mortgage loans across the country, under the National Housing Fund (NHF) scheme.

According to Esin, the bank disbursed N1.2 billion to over 1,600 beneficiaries under the Home Renovation Loan Scheme. There was also the disbursement of N2.72 billion to 22, 716 retired contributors as refunds in line with the NHF Act, the FMBN chief said.

In a bid to ensure easier access to the NHF Loan Scheme for low income earners, the bank secured the  minister’s nod to capitalise equity contribution and perfection fees for mortgage applications of N5 million and below for the bank’s funded estates nationwide.

By implication, loan applicants will have 24 months to pay the associated equity contributions and perfection fees for loan under the N5 million threshold, which normally, would attract upfront equity contribution of 10 per cent of the total credit facility.

Esin stressed the need to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock, which will be brought on stream through various efforts of the bank and the Federal Government, including the National Housing Model expected to deliver 30,000 housing; the Memorandum of Understanding (MoU) between FMBN and Shelter Afrique to provide $2 billion construction finance, accessible by members of Real Estate Developer of Nigeria (REDAN). The MoU has a plan to providing 10,000 housing units annually for the next 10 years as well as the renewed drive to complete the bank’s funded estates across the country, which were previously abandoned, capable of supplying over 25,000 housing units, over the next three years.

Source: The Nation