FMBN Approves N9bn Mortgage Loans

The Federal Mortgage Bank of Nigeria (FMBN) has disclosed that N9 billion has been approved by the federal government through the bank for the creation of 1,244 mortgage loans across the country under the National Housing Fund (NHF) Scheme.

The bank also recorded a landmark performance as it posted an operating surplus of N2.7 billion for the year ended December 2016, marking its return to profitability for the first time in over two decades.


The FMBN disclosed this while enumerating its performances at a Business Performance Review Session.

The bank also said it had disbursed N1.2 billion to over 1,600 beneficiaries under its Home Renovation Loan Scheme and also commenced the disbursement of N2,722,302,273.57 to 22,716 retired contributors as refunds, in line with the NHF Act.

These are in addition to the setting up a tripartite committee of the FMBN, Real Estate Developers Association of Nigeria (REDAN) and Mortgage Banking Association of Nigeria (MBAN) which functions as a clearing house for issues militating against efficient housing delivery.

ALSO READ: Make Money From The ToLet Affiliate Program

Highlighting its performances for 2016, the FMBN also disclosed that in a bid to ensure easier access to the NHF Loan Scheme for low-income earners, the bank had secured the approval of the minister of power, works, and housing, Babatunde Fashola, to capitalise equity contribution and perfection fees for mortgage applications of N5 million and below, for the bank’s funded estates nationwide.

This means that loan applicants will now have 24 months to pay the associated equity contributions and perfection fees for loan amounts under the N5 million threshold, which would normally attract upfront equity contribution of 10 percent of the loan amount.

The bi-annual business performance review conference was conceived to provide an opportunity for groups and field offices to report on their key performance indicators, identify critical factors affecting performance and proffer pragmatic solutions.

The session also allows for stakeholders to brainstorm on strategies for improved performance and sustained growth in the immediate future and a review of the broad provisions of the 2017 budget, and to communicate its goals to the top management of the nation’s mortgage bank.

ALSO READ: The Lagos Megacity Housing Crisis

READ  Tips for a successful mortgage application

The acting managing director and chief executive, FMBN, Mr. Richard Esin, in his opening remarks, commended the entire staffers for their efforts and achievement in 2016 and outlined his expectations for 2017, including closer inter-agency collaboration, optimal utilization of resources, stronger stakeholder relationship, and improved staff productivity.

He stated that the minister of power, works, and housing, Fashola, was optimistic about the year ahead, as he was expecting the bank’s efforts in the past year to evolve into significant results in 2017.

Esin also stressed the need for the agency to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock which will be brought on stream through various efforts of the Bank and the federal government, including the National Housing Model which is expected to deliver 30,000 housing units; the Memorandum of Understanding between FMBN and Shelter Afrique to provide $2 billion construction finance accessible by members of REDAN, aimed at providing 10,000 housing units annually for the next 10 years, as well as the renewed drive to complete the bank’s funded estates across the country which were previously abandoned, capable of supplying over 25,000 housing units over the next three years.

The FMBN boss expressed optimism that the efforts of 2016 will yield the desired results in 2017 and urged the staff to be focused and steadfast in carrying out their functions, adding that staff welfare and capacity development would be prioritized by management.



READ  How to Get Your Dream Home by Paying Rent

Source: Leadership News


Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button