- NMRC, MFBs Raise N4.5bn for Affordable Housing Scheme
The Nigerian Mortgage Refinancing Company has signed an agreement with the Ogun State Property Investment Corporation, Imperial Homes, TrustBond and Homebase Mortgage Bank for the construction of affordable houses for Nigerians.
The agreement, which was consummated in Abuja, is part of measures aimed at stimulating housing development in the country.
Speaking at the signing of the Memorandum of Understanding, the Managing Director/Chief Executive Officer, NMRC, Prof. Charles Inyangete, said the partnership was a market development initiative designed to boost the capacity of OPIC to build more affordable houses for the citizens.
He said the move would provide the much needed liquidity and empower the three partner mortgage banks to give more long-term mortgage loans to potential house owners in the Ogun and Lagos environs.
This, he noted, would help to ensure that a ready and effective demand for properties developed by OPIC existed so that the funds invested could be quickly recovered and ploughed back into the construction of more houses.
Under the terms of the agreement, the NMRC boss said participating mortgage banks would provide mortgage loans to applicants who meet the company’s strict underwriting standards for the purchase of the houses built by OPIC.
As an expression of their commitment to the success of the scheme, he said the consortium of banks had committed N1.5bn each, totalling N4.5bn to the project.
Explaining the strategic role of the NMRC in the partnership, he said the company would refinance the mortgage loans given by the banks to potential homeowners.
The NMRC, according to him, will do this by buying the stock of mortgages provided by the banks, using its long term debt instruments sourced from the capital market.
Inyangete stated, “The objective is to ensure that the mortgage banks retain sufficient liquidity to provide more mortgages to more people for the purchase of OPIC properties, and in the process, help to gradually expand the circle of home ownership in the Ogun and Lagos environs.
“The partnership with OPIC, in collaboration with Imperial Homes, TrustBond and Homebase mortgage banks, marks an important milestone in the NMRC’s effort to develop the mortgage market.
“It is our belief that the business financing model that we have developed will significantly strengthen OPIC’s positioning as a potent catalyst for housing development in Ogun State.”
Also speaking at the event, the Managing Director, OPIC, Mr. Babajide Odusolu, said the partnership held great promise for the achievement of the corporation’s plans of being the dominant provider of quality and affordable housing in Ogun State.
“This partnership gives a big boost to the plans of OPIC to build and offer quality houses under a mortgage system that is affordable and convenient for aspiring homeowners to take,” he added.