The Shehu Usman Osidi-led management of the Federal Mortgage Bank of Nigeria (FMBN), today met with representatives of Nigeria’s mortgage banking sector under the aegis of the Mortgage Bankers Association of Nigeria (MBAN). The MBAN delegation, led by its President, Mr. Ebilate Mac-Yokori, included notable attendees like the Managing Director of the Federal Housing Authority (FHA), Mortgage Bank, Mr. Hayatudeen A. Awwal, the representatives of the Real Estate Developers Association of Nigeria (REDAN), AG Mortgage Bank and other prominent mortgage bankers.
In his opening remarks, the Managing Director/Chief Executive of FMBN, Alh. Shehu Usman Osidi, highlighted the significance of the meeting as a platform for fostering collaboration, exchanging insights and devising strategies to address challenges within the mortgage sector.
He reiterated his commitment to ensuring that these interactions happen consistently, as they are pivotal to fostering stronger collaboration and better outcomes for the Nigerian mortgage finance sector.
Osidi used the opportunity to highlight some key challenges encountered by the Bank in its engagement with the Primary Mortgage Banks (PMBs), bordering around inability to submit interim security, delay in disbursement of funds to beneficiaries within the stipulated 60 days and frequent swapping of beneficiaries and property after FMBN approval.
Other challenges identified included the PMBs inability to meet their financial obligations to FMBN leading to increase in the Bank’s NPLs, Failure to submit audited financial statements on request, non-remittance of repayments to the Bank, incomplete loan documentation as well as delay in signing and returning loan agreements.
Despite these challenges, the MD/CE Alh. Usman Shehu Osidi expressed optimism about overcoming them through open dialogue and collaboration. He assured stakeholders that FMBN is tackling internal issues to better support PMBs and enhance the broader housing finance sector.
Commending MBAN’s leadership for its cooperation, particularly in addressing critical issues such as the Single Obligor limit with the Central Bank of Nigeria (CBN), Osidi reaffirmed the Bank’s commitment to working closely with the Association to align processes and actions for the greater good of the mortgage sector.
The President of MBAN, Mr. Mac-Yokori, re-emphasised the need to resolve the Single Obligor limit, which he described as a significant barrier to the effective operations of the PMBs. He expressed confidence that ongoing efforts, led by FMBN and supported by PMBs, would help surmount these challenges and reposition the mortgage sector for sustainable growth.
