Experts task new president on mortgage sector’s development

INDUSTRY experts have called on President Bola Ahmed Tinubu to make development of mortgage sector a priority.

According to them, government’s political will is extremely needed to turnaround the sector.

The experts, who spoke on the theme: ‘Navigating Current Challenges in the Nigerian Mortgage Market,” at a recent forum held virtually, used the occasion to identify some of the constraints to the development of the Nigerian mortgage industry and the necessary steps required to overcome the challenges.

Experts comprising the executive director, Housing Development Advocacy Network (HDAN), Mr Festus Adebayo; Managing Director, Homebase Mortgage Bank, Dr Femi Johnson; managing director, Federal mortgage Bank of Nigeria (FMBN), Mr Madu Hamman and managing director,

Miller Fuller (Housing) Foundation, Arc Sam Odia, spoke at the forum.

The experts itemised threats to mortgage system development to include cumbersome foreclosure procedures, Land Use Act 1978, poor land registries, weak capacity of Primary Mortgage Banks and domination of financial system by retail deposit banks, among others.

In their recommendations, the experts want the government to strengthen the FMBN, adding that all outstanding mortgage related bills in the National Assembly must be followed up by stakeholders for speedy passage.

The stakeholders also suggested the need for improved advocacy and setting up lobbying group  to follow matters that will benefit housing development in Nigeria.

Lamenting poor land registry’s administration in the country, executive director, Housing Development Advocacy Network (HDAN), Mr. Festus Adebayo, called the new government to substantially improve the registration process by reducing the time taken to achieve the necessary consents while reducing the costs from 20-30 percent of the value of the property to nearest 5 percent.  According to him, the authority should remove the need for Governor’s consent for land transactions.

Besides, he urged the government to introduce large scale land registration programmes and facilitate the acquisition of title by existing occupiers of property.

Adebayo wants president Tinubu to either strengthen the National Housing Fund (NHF) or significantly reform it so as to redress the balance between contributors and borrowers

“The new government should substantially increase the capital requirements for primary mortgage institutions (PMIs) and make loans through the NHF only to those that meet this and other standards.”

“Government must put FMBN on a stable footing and develop its facilitation role; reform the arrangement for foreclosure; and develop a mortgage insurance programme,” he said.

In addition, Adebayo called the government to introduce comprehensive building code and provide protection for buyers of houses during the course of construction

The Managing Director, of Homebase Mortgage Bank, Dr Femi Johnson, emphasised the need to de-risk the market and commoditise the mortgage sector for more Nigerians to have access to the mortgage.

Managing Director, Millard Fuller Housing Foundation, Sam Odia, called for adoption of new and innovative approaches to addressing mortgage sector’s challenges. He also urged that efforts should target solutions to the low-income masses in need of housing.

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