In an effort to boost the growing mortgage industry in Nigeria, five mortgage firms received licensing and approval from the Mortgage Banking Association
The mortgage banking association has moved to ensure sustainability of the sub-sector, with the approval of licenses for five mortgage brokerage firms.
This is in line with the recent authorization by the Central Bank of Nigeria (CBN) of the Mortgage Banking Association (MBAN), as a self-regulatory body to embark on registration and supervision of the mortgage brokerage operators in the mortgage banking sector.
MBAN’s duties include, monitoring compliance within the sector to protect the interest of the public as well the standardization of the mortgage sector.
The scheme by the Mortgage Banking Association of Nigeria (MBAN) would empower licensed firms to solicit for borrowers and negotiate, find and place mortgage and provide advisory services for a fee. A duly licensed corporate firm is expected to employ licensed mortgage brokers/ agents for the purpose of mortgage brokerage activities.
The five firms licensed by MBAN are; Esteem Management Consult Service Limited; Real Estate Brokerage Company Limited, Primax Mortgage Brokers Limited and Colindale Mortgage Brokers Limited.
MBAN President, Dr. Femi Johnson who confirmed the development at the 11th Mortgage Banking Sub-Sector CEOs’ Annual Retreat held in Lagos, recently, envisaged that the new addition to the sub-sector would positively support service delivery in housing finance.
He highlighted the need for mortgage bankers in the country especially in the housing sector and stated that the five companies had been thoroughly screened and had successfully met the strict criteria for registration.
The Nigerian Deposit Insurance Company encouraged operators to explore alternative business models in order to meet market demands especially following the economic status quo of the population He urged the need for fair pricing.
Alhaji Umaru Ibrahim, mni-
In his statement, he says “On the part of supervisors, emerging guidelines should reflect market dynamics with an eye on effective Enterprise Risk Management aimed at mitigating credit, operational and market risks.
He reiterated the ability of NDIC to sustain its efforts in ensuring that all insured institutions are put on the path of sustainable growth as development depends largely on the premium contribution by all the insured institutions.
He discussed the need for PMBs to broaden their product offerings, especially to the middle and low income to stimulate financial inclusion. “As a matter of deliberate strategy, houses should be designed and provided for the poor. Also, affordable accommodation should be designed for the disadvantaged women group. A deliberate measure should be taken to simulate community cooperative societies to develop saving habits that will attract loan for mortgage,” Ibrahim said.