- MWFL Pumps N88.5m in Trustbond Mortgage Bank Plc
As part of its N20billion asset-backed commercial paper programme, Mortgage Warehouse Funding Limited (MWFL) has pumped a total of N88.5 million in TrustBond Mortgage Bank Plc, to broaden the company’s “origination capacity”.
In a statement released on Friday, the MWFL disclosed that “A total of four mortgages were pre-financed to the tune of N88.5m and funds have been disbursed to TrustBond Mortgage Bank Plc.
“This short-term pre-financing vehicle will enable the mortgage bank to begin to expand its origination capacity.”
The statement further revealed that the funds released to TrustBond Mortgage Bank was the first series of mortgages it would receive as a member bank under the umbrella of the MWFL.
MWFL Chairman, Sonnie Ayere also said that MWFL would fund more of its member banks in order to boost their mortgage financing power to assist Nigerians interested in acquiring houses in the country. He added that it was fulfilling to finally see the MWFL fund its first mortgage bank at a holding duration cost of 9.59 per cent.
“Like everything else, proof of concept is most important and that hurdle has now been scaled.
“The conduit is now looking forward to funding more of its member banks and giving them the firepower to go out there with a 100 per cent confidence to give mortgage financing to Nigerian citizens wishing to get on to the property ladder,” he said.
The MWFL is sponsored by, Mortgage Banking Association of Nigeria (MBAN), the Nigeria Mortgage Refinancing Company Plc, Lion’s Head Global Partners through the African Local Currency Bond Fund as Initial Subordinated Note Subscribers, DLM Advisory Partners Limited, and Citihomes Finance Limited.
According to the President of MBAN, Niyi Akinlusi, the successful completion of the first series of funding by the MWFL was significant to the mortgage industry in particular and the Nigerian economy at large, adding that the move heralds the “beginning of continuous flow of liquidity from the money market to the mortgage industry and another major initiative in making Nigerians homeowners and reducing the national housing deficit of over 20 million units.”