‘Mortgage Refinance Coy, Threat To FMBN Operations’

A Senior Official of the
Federal Mortgage Bank of Nigeria (FMBN) has said that the establishment of the Nigeria Mortgage Refinance Company (NMRC) was not a threat to FMBN.
The official, who wanted to remain anonymous, made the assertion in an interview with newsmen in Lagos.
He told journalists that FMBN had successfully provided social loans at six per cent interest to those who applied.
According to him, FMBN also provides estate development loans to housing developers at 10 per cent as well as manage the National Housing Fund (NHF).
“FMBN is in the business of creating mortgages through its loans to individuals and developers with 30 years repayment period.
“The refinance company will not be dealing with individuals and it will not engage in creating fresh mortgages.
“You do not go to NMRC looking for fresh loans. You are going there with already existing mortgages.
“NMRC is like rediscounting mortgages and it will be done at the current Monetary Policy Rate (MPR).
“If the rate is favourable, FMBN can also carry its existing mortgages to NMRC for refinancing,” he said.
He said that NMRC would be dealing with financial institutions as well as ensuring that many Mortgage Backed Securities (MBS) existed in the capital market.
He said that development of numerous MBS products would propel FMBN listing in the nation’s bourse.
“What is needed in the country now is a robust mortgage finance system that will help reduce the estimated 17 million housing deficit.
“So, the more we have mortgaged refinance companies, the merrier for the nation,” he said.