FMBN Raises N121bn For Mortgage Agencies

The Federal Mortgage Bank of Nigeria (FMBN) has so far disbursed N121.2 billion as loans to mortgage banks and estate developers between 1992 and February 2011.

The bank’s Managing Director, Mr Gimba Ya’u Kumo, disclosed this in Lagos last Saturday at the closing ceremony of the 11th Lagos Housing Fair.

He said that N50.7 billion was approved as National Housing Fund (NHF) loans for Primary Mortgage Institutions (PMIs), while N70.4 billion Estate Development Loans (EDL) were given to estate developers.

Ya’u Kumo said that the bank also disbursed N24.8 billion to16, 469 NHF contributors for the construction of 16,469 houses through PMIs, while N36.7 billion was disbursed as EDL to estate developers.

The managing director, who was represented by Mr Bola Ogunsola, FMBN’s Executive Director (Loan Production, Security Issuance and Market Development), said that a total of 27, 524 houses were constructed with the N36.7 billion estate development loans.

He said that the FMBN had built a total of 53,518 houses via loans disbursed to PMIs, mortgage-backed bonds and estate developers.

He said that the houses were located in 91 FMBN-funded estates across the country.

Ya’u Kumo pledged that FMBN would start disbursing EDL in three tranches of 40 per cent, 30 per cent and 30 per cent, as part of efforts to make housing delivery faster.

He said that this would enable estate developers to have more funds to complete their projects in record time, adding, however, that 40 per cent of the houses must be fully completed before a developer was able to benefit from another tranche of the loan.

Ya’u Kumo stressed that FMBN would monitor effective compliance with the laid-down regulations and specifications before approving fresh loan disbursements to estate developers.