NMRC, FMBN to Collaborate Towards Strengthening Secondary Mortgage Market

The Federal Mortgage Bank of Nigeria (FMBN) and the Nigerian Mortgage Refinance Corporation (NMRC) are to collaborate towards strengthening the secondary mortgage market and the Nigerian housing sector in general.

Esin informed the NMRC Chief Executive, Professor Charles Inyangete, that FMBN is refocusing its business model to address the lower end of the income ladder with emphasis on the mass market for housing delivery.

Speaking when he received Inyangete in his office, he said this would be achieved by taking advantage of the concessionary (below-market) mortgage loan terms under the National Housing Fund (NHF) Scheme managed by the Bank.

The NMRC Chief Executive expressed the hope of more positive interaction and the need for synergy between the institutions, which are set up to address different income segments of the Nigerian mortgage market.

Notwithstanding the different market segments served by FMBN and NMRC respectively, it was noted that the challenges faced are common to the Nigerian Housing/Mortgage sector and therefore requires that both institutions adopt a collaborative and complementary approach to addressing such issues.

Consequently, areas for a common synergy that were identified at the meeting include the review of land and property registry practices for time and cost-effectiveness, the enactment of a foreclosure law to mitigate mortgage lending risks, the introduction of industry-wide uniform underwriting standards and the development of a data collection system for the Nigerian mortgage market. Both institutions agreed to set up a committee to further explore and deepen their relationship along the identified areas slated for collaboration.