Mortgage Institutions Get New Recapitalisation Deadline

The nation’s apex bank the central bank of Nigeria (CBN) has altered the deadline it gave to primary Mortgage Institutions (PMIs) in the country to recapitalise.

The Tide has reliably gathered that a memo to that effect from the Other Financial Institutions Department (OFID) of the CBN has been issued to the Umbrella body of PMIs; the Mortgage banking Association of Nigeria (MBAN).

A six months extention has been granted by the CBN to the PMIs within which to recapitalise or shut down their operations.

In the new arrangement, the 30th of April, 2013 has been given as the new deadline for all primary Mortgage Institutions to recapitalise.

The new move, it was gathered, came as a result of entreaties from Mortgage operators to review the new guidline for the sector.

The CBN initially, granted the Mortgage firms a 12-month deadline, which was from 1st November, 2011, and was expected to terminate by 12th December 2012.

Mortgage Institutions were categorized into National and State Mortgaged firms, where as the National PMIs are allowed to operate in any or all parts of the country, the state PMIs are restricted to only their states of domicile.

National PMIs are required to recapitalise with new N5 billion premium paid up capital, while the state PMIs are to pay N2.5 billion.

Corlins Walter