MORTGAGE DIGEST. Vol. 1 No. 1 June MD/CEO s Welcome Address. NMRC Appoints Board's Chairman and Independent Directors

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MORTGAGE DIGEST Vol. 1 No. 1 June 2016 MD/CEO s Welcome Address The successful licensing by the Central Bank of Nigeria (CBN) of the Nigeria Mortgage Refinance Company Plc.

This is the premier edition of the NMRC Mortgage Digest (NMD), a periodical promoted by the Policy, Strategy and Partnership Unit of NMRC to highlight contemporary housing issues and avail our

Our goal as a company is to be the dominant housing partner in Nigeria.

1 MORTGAGE DIGEST Vol. 1 No. 1 June 2016 MD/CEO s Welcome Address The successful licensing by the Central Bank of Nigeria (CBN) of the Nigeria Mortgage Refinance Company Plc. (NMRC) in February 2015 has laid a solid foundation for the realization of the aim of providing affordable housing for Nigerians. This is the premier edition of the NMRC Mortgage Digest (NMD), a periodical promoted by the Policy, Strategy and Partnership Unit of NMRC to highlight contemporary housing issues and avail our subscribers of useful links to academic, professional and unorthodox resources employable in fulfilling NMRC s service promise to facilitate affordable housing for Nigerians. Our goal as a company is to be the dominant housing partner in Nigeria. We aim to promote a community of subscribers to the NMD, who are committed to improving Nigeria s housing communities, and making affordable home ownership a reality. Welcome. Remove barriers to home ownership, provide liquidity, affordability, accessibility and stability to the housing market in Nigeria... -Prof Charles Inyangete NMRC Appoints Board's Chairman and Independent Directors In line with best practice in corporate governance, The Nigeria Mortgage Refinance Company (NMRC) recently appointed a new Board chair in addition to four independent Directors to serve on its Board. Those appointed include: Dr Charles Okeahalam Chairman Mr. Charles Adeyemi Candide-Johnson (SAN) Mrs. Fatima Wail-Abdurrahman Mrs. Anino Emuwa Mr. Adeniyi A. Akinlusi 1

Dr Charles Okeahalam holds a DSc. Degree in Financial Economics and a PhD in Economics (Econometrics) from Queen Mary s College, University of London.

He was called to the Nigerian Bar in July, 1984 and in the same year received his LLM Degree from the University of London. Mrs. Anion Emuwa is an international management Consultant. She holds a B.

2 Dr Charles Okeahalam holds a DSc. Degree in Financial Economics and a PhD in Economics (Econometrics) from Queen Mary s College, University of London. He co-founded AGH Capital, an investment holding company and has been the Managing Director/ CEO of the Firm since 2002 Mr. Charles Adeyemi Candide-Johnson (SAN) is Senior Partner. He was called to the Nigerian Bar in July, 1984 and in the same year received his LLM Degree from the University of London. Mrs. Anion Emuwa is an international management Consultant. She holds a B.SC. Honours degree in Monetary Economics from the London School of Economics & Political Science, and MBA from Canfield School of Management. Mrs. Fatima Wail-Abdurrahman is a professional architect with over 30 years post qualification experience. She obtained her B.A in Architecture & Urban Studies from University College, London. She currently serves as the Chief Executive Officer of Filmo Group of Companies. Mr. Adeniyi A. Akinlusi holds a B.sc in Accounting from University of Ilorin and M.B.A from University of Lagos. His also an alumnus of Harvard Business School and Lagos Business School. His currently the Managing Director/ Chief Executive Officer of TrustBond Mortgage Bank Plc. He has over 20 years experience in Banking. Refinancing Update Nigeria Mortgage Refinance Company (NMRC) has disbursed close to #2.6 billion mortgage portfolio of four of its member institutions/primary mortgage Banks. These include, Imperial Homes Mortgage Bank Ltd, Trustbond Mortgage Bank Plc. Homebase Mortgage Bank Ltd, SunTrust Savings and Loan. These refinancing are in line with NMRC s drive to facilitate the provision of affordable homes at good mortgage rates to Nigerians. NMRC is building a solid foundation in the secondary mortgage market in other to remove barriers to home ownership, provide liquidity and stability to the housing market in Nigeria. 2

Business in NMRC. Development Mortgage refinancing is a relatively new phenomenon in Nigeria and very few Nigerians know about NMRC and its activities.

3 Business in NMRC. Development Mortgage refinancing is a relatively new phenomenon in Nigeria and very few Nigerians know about NMRC and its activities. This makes awareness creation very imperative and a key objective of business Development Unit, and various methods are being employed to achieve this. Cooperative societies and other bodies such as staff unions are not left out of the awareness campaign. The primary business of NMRC is mortgage refinancing through its mortgage lending member institutions. To this end, Business Development, in addition to working with member banks with a view to refinancing their conforming mortgage loan portfolio, engages property developers (both private and government) with a view to sensitizing them of the benefits of introducing their off-takers to NMRC refinancing through member-banks. As a liquidity facility Company, NMRC provides long term funds for mortgage refinancing, the objective being to make home ownership affordable. This means that NMRC refinancing facilitates provision of more housing units quicker. Presently, Business Development, in collaboration with one of NMRC member banks, is engaging a developer who has signed Memorandum of Understanding with a couple of state governments to produce over 10,000 housing units. We are also engaging some state owned building corporations, with a view to ensuring that mortgages for their off-takers are created by NMRC member banks and refinanced by NMRC. Mrs Dorothy Obata Contact : Head, Business Development Recently delivered project under Lagos HOMS programme NMRC Signs MoU with FMDQ NMRC and FMDQ recently signed and MoU aimed at building the Nigerian mortgage industry through the capital markets. This initiative is to educate the market on mortgage related debt instruments such as mortgage Backed Securities, Real Estate Investment Trusts, amongst others, in readiness for the housing revolution which the Nigerian market is positioned to experience. FG Housing Loans Board Considers Alternative Funding The Governing Board of the Federal Government Staff Housing Loans Board has considered and ratified the partnership of the Board with Nigeria Mortgage Refinance Company (NMRC). The Executive Secretary of the Board, Dr. Hannatu Adamu Fika who made this known during the board s 74th meeting held recently, informed the Board that the management in its quest to address the backlog of housing loans applications had on behalf of federal public servants, sought the partnership with NMRC for the refinancing of the outstanding loans applications approved by the governing board. Proposed Partnership with Lagos State The Commissioner for Housing, Prince Gbolahan Lawal stated Lagos is proposing to go into partnership with NMRC. He said that State is prepared to sign a Memorandum of Understanding as soon as both parties agree on the terms and modalities of the proposed facilities, which are geared towards alleviating the burden of financing mortgage in the State. 3

Home Ownership through Mortgage Mortgage Pre-qualification The initial thing is to get qualified, which is different from getting approval for a mortgage loan.

Qualifying for a mortgage must be based on your credit history, what you owe, your remuneration, and the amount you require as a mortgage (this aspect can easily be covered by a mortgage lending

The qualification will help determine the interest rate you can afford; in addition it will also bring other aspects of a mortgage into perspective like repayment structure, pre-payment clauses and

4 Home Ownership through Mortgage Mortgage Pre-qualification The initial thing is to get qualified, which is different from getting approval for a mortgage loan. The big difference is that no approval is ever given by a lender until they have an opportunity to inspect the property you intend to buy. Qualifying for a mortgage must be based on your credit history, what you owe, your remuneration, and the amount you require as a mortgage (this aspect can easily be covered by a mortgage lending institution or mortgage consultant at a fee). The qualification will help determine the interest rate you can afford; in addition it will also bring other aspects of a mortgage into perspective like repayment structure, pre-payment clauses and liquidation options interest rates are important but beyond rates it is important to choose and balance other factors like tenor, home price and quality. What Will My Monthly Mortgage Payment Be? Engaging the right developer for the right property After getting through the hurdle of mortgage qualification, it is only natural to feel the urge to go home shopping, with different property development schemes available it is important to consider property with developers that have a reputation for quality, timely delivery and verifiable projects and contacts. Application and approval If and when an appropriate property has been identified for purchase after qualification the mortgage lender is now in a position to process your application on the property you wish to buy for mortgage approval. Upon reviewing the application and the property to buy, the lender will issue an offer letter outlining the terms and conditions of the mortgage with a list of any additional requirements to help facilitate the mortgage process. At this point terms and conditions are subject to negotiation and review with the lender in line with market conditions. Legal arrangements for title After reviewing the application and supporting documents, the lender will start up the legal process for title registration and assignment of same. The legal arrangements will consist of all the necessary title changes and execution of all mortgage documents and go over the final agreements. Transfer of ownership for possession At this stage the transaction should have gotten to the point of closure and the mortgage lender would have sent the funds to the chosen seller or developers bank account. The lender or his legal representative will communicate with the seller s legal representatives regarding an exchange of cash for keys and it is expected that the lender exchanges the keys for the title deeds with you. Even though your have taken possession you will only become the proud owner of your own home when your mortgage is fully repaid over a specified tenure 15-20years. What are the legal requirements for Possession and ownership? 4

NMRC s Events African Union of Housing Finance NMRC @ 10th Abuja Housing Show Date: July 18th 20th, 2016 Venue: International

Mortgage market News Infinity Trust Mortgage Surmounts economic downturn. businessdayonline.

5 NMRC s Events African Union of Housing Finance 10th Abuja Housing Show Date: July 18th 20th, 2016 Venue: International Conference Centre, Abuja. the Affordable Housing Summit Date: June 27th-28th, 2016 Venue: Transcorp Hilton Abuja, FCT. Mortgage market News Infinity Trust Mortgage Surmounts economic downturn. businessdayonline.com/2016/04/infinity-trust-mortgagesurmounts-economic-downturn For Participation/Sponsor details contact. Dr. Chii Akporji cakporji@nmrc.com.ng Contact Us Head Office Wing A, 5 th Floor Pent House Clan Place, Plot 1386A, Tigris Crescent, Maitama Abuja, Nigeria. Lagos Office Production Team: 17 Sanusi Fafunwa Victoria Island, Lagos, Nigeria. Managing Editor - Abel Owotemu Production Editor - Chiamaka Udeh NMRC Connect info@nmrc.com.ng 5

MORTGAGE DIGEST. MD/CEO s Welcome Address. NMRC AGM and Financial results for the year. In this Issue. Vol. 5 No. 5 October 2017

MORTGAGE DIGEST. MD/CEO s Welcome Address. NMRC AGM and Financial results for the year. In this Issue. Vol. 5 No. 5 October 2017 1 MORTGAGE DIGEST Vol. 5 No. 5 October 2017 MD/CEO s Welcome Address Welcome to the 5 th edition of Mortgage Digest, NMRC s Newsletter. NMRC AGM and Financial results for the year. The 2 nd Annual General