FG Approves N9bn Mortgage Loans For Housing Scheme

The acting Managing Director and Chief Executive, FMBN, Mr. Richard Esin disclosed this at a Business Performance Review Session over the weekend.

According to Esin, the bank also recorded 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 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.

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 per cent 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.

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.

Also, 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, capable of supplying over 25,000 housing units over the next three years.