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Mortgage operators have requested regulatory-induced monetary and fiscal measures that stimulate the subsector toward sustainable development.
They also implored the Central Bank of Nigeria (CBN) to accelerate the implementation of the Mortgage Interest Return Program (MIDP), along with other policy measures that moderate the cost of funds to single digits, in a consistent and sustainable manner. .
The operators, under the auspices of the Mortgage Banking Association of Nigeria (MBAN), made the call in a seven-page statement after the retirement of their Chief Executive Officers (CEOs) in Lagos. The association plans to engage the CBN in specific modalities required to facilitate policy implementation, monitoring and impact evaluation.
The annual CEO retreat was conducted through Zoom and physically, with participants coming from Mortgage Banks, Mortgage Brokerage Companies, CBN, Nigeria Deposit Insurance Corporation (NDIC), Federal Mortgage Bank of Nigeria (FMBN), Nigeria Mortgage Refinance Company (NMRC). Plc, Mortgage Warehouse Funding Limited (MWFL).
The retreat with the theme “Developing a sustainable and resilient mortgage banking subsector beyond the COVID-19 pandemic: associated risks, challenges and opportunities,” deliberated on potential areas that could boost the subsector’s resilience to withstand unforeseen events such as the COVID-19 pandemic and ultimately enhancing the continued sustainability of the industry.
Specifically, MBAN urged CBN, as part of the COVID-19 mitigation and intervention, to provide the residual 75 percent equity capital that would complement the existing 25 percent equity capital already underwritten by NMRC for the immediate take-off of Nigeria Mortgage. Guarantee Company. Plc (NMGC) for its expected impact on the country’s mortgage banking.
“This agreement would include an expiration clause according to which the shares would be subsequently withdrawn by the mortgage banks / other interested parties in the future. This concrete step would have ensured the effective take-off of operations by NMGC, in view of the effects of the pandemic on the raising of capital of the company through equity investments of mortgage banks ”, said MBAN.
President of the Mortgage Banking Association of Nigeria, Niyi Akinlusi
The document, endorsed by MBAN President Mr. Adeniyi Akinlusi and Executive Secretary / CEO Mr. Kayode Omotoso, advised banks to adopt the technology. “Automation would be the best way to ensure competitiveness and efficiency in the subsector. Therefore, investment in technology to drive home loan origination processes has become very imperative for mortgage banks and brokerage firms. “
The association further appreciated the current empathic support from CBN / NDIC, but called on regulatory agencies to take a more receptive perspective in meeting their supervisory responsibilities over mortgage banks, especially in applying sanctions on identified problems. during the on-site inspection. exercises.
Previously, CBN Deputy Governor, Financial Systems Strategy (FSS 2020), Ms Aishah Ahmad, represented by the Director of the Oversight of Other Financial Institutions Department (OFISD), Ms Nkiru Asiegbu, advised primary mortgage banks to take the steps necessary to optimize technology adoption to adapt your business strategies to changing customer demographics and expectations.
He said banks should also collectively develop a roadmap towards a stronger profitability outlook for the industry.
Speaking, NMRC Managing Director / CEO, Mr. Kehinde Ogundimu, reaffirmed NMRC’s deep commitment to the sustainability of the subsector by addressing various issues and bottlenecks that obstruct the wheel of progress, such as the foreclosure law. Currently, six states, namely Kaduna, Lagos, Ekiti, Edo, Nasarawa and Ogun states have passed their laws.
Similarly, FMBN Managing Director / CEO Ahmed Dangiwa reiterated that partnership and collaboration would be required to overcome the negative impact of the pandemic on mortgage banking.
He also affirmed FMBN’s commitment to working with MBAN and other stakeholders to promote better service delivery under the National Housing Fund (NHF) scheme.
MWFL President Sonnie Ayere said the company is fully operational and willing to support PMBs with short-term money market instruments for the creation of mortgages, which would be refinanced by NMRC.
Therefore, he urged PMBs to take advantage of untapped opportunities so that more Nigerians have greater access to affordable home mortgages.
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