Mortgage association affirms solidity of industry

The Mortgage Banking Association of Nigeria (MBAN), the umbrella body for all Primary Mortgage Institutions (PMIs) in Nigeria, has declared that the mortgage banking industry in the country is stable and sound, in an apparent move to boost public confidence in the sector in the wake of recent reforms in the banking industry.

A statement signed by MBAN President, Mr. Abimbola Olayinka, asserted that the primary mortgage operators in Nigeria are suitably poised to turn the current clime in the financial services industry into opportunities for organic growth and development of the sector.

“It is true and apt that some universal banks are affected by the global credit squeeze, but the effect is not as damaging to the operations of Primary Mortgage Institutions in Nigeria as being portrayed recently in newspaper publications.

“The effect on the Banking Sector in Nigeria has no direct impact on any of our PMIs to the extent of running jitters, despite the appreciable degree of inter-relationship between the Universal and Mortgage Banking Sectors in Nigeria.

“It would be recalled that despite the deleterious effects of the financial services industry distress in Nigeria between 1989 and 1999, the Mortgage Banking Sector though very young, was able to survive the inclement economic crisis.”

The association further stated: “For the comfort of our teeming loyal customers and stakeholders, the Primary Mortgage Institutions’ Sector, as early as year 2005 through its strategies for repositioning the sector, had voluntarily taken a decision to enhance the Paid-up Capital of its Member-Institutions from N100 million to N1billion in order to shore its operational capacities, pending formal Consolidation/Reforms of our sector by the Central Bank of Nigeria (CBN).

“We are confident to let our public know that our member-institutions have continued to respond positively to the various agreed stimuli for the success of our sector.

“We are also in constant sync with the CBN, as well as, other Nigerian and foreign stakeholders on the establishment of long term mechanisms, including a liquidity facility vehicle, for provision of sustainable long term funding to our Mortgage Banking sector in our collective bid to create a veritable platform for provision of affordable Housing for the teeming populace in Nigeria.

“We implore our esteemed customers and stakeholders to be rest assured that the Mortgage Banking sector in Nigeria has become suitably poised more than ever, to continue to justify the increasing trust and confidence reposed in the Primary Mortgage Institutions to achieve our noble goals.”