A meeting to address the issues raised by Primary Mortgage Institutions (PMIs) on the recent decisions by the Federal Mortgage Bank of Nigeria (FMBN) concerning the National Housing Fund (NHF) was cancelled at the last minute by the management of the bank
FMBN had invited the executives of the Mortgage Banking Association of Nigeria (MBAN), the umbrella body of the PMIs, to a meeting last Tuesday in response to a letter from the Association faulting the decisions of the Board of the FMBN to increase the amount loanable under the NHF scheme as well as extend eligibility to on_lend NHF loans to other financial institutions.
But Vanguard gathered from a reliable source that FMBN cancelled the meeting, claiming that they needed to sort out some things and will reconvene whenever they are ready. No new date has been fixed for the meeting.
As at the time of reporting, Vanguard was not able to get the reaction of FMBN as a phone contact with the Corporate Affairs person did not go through, and there was no reply to a text message sent to him.
It would be recalled that the board of FMBN recently approved a 200 percent increase on mortgage loan accessible by an individual contributor to the National Housing Fund (NHF) to a maximum of N15 million.
It alsoÂ expandedÂ mortgage loan originators to on_lend NHF loan to include universal banks, insurance firms, pension funds and microfinance banks subject to their meeting the criteria and requirements laid down for Primary Mortgage Institutions (PMIs) and the provisions of their enabling laws and regulatory authorities.
The board equally increased down payment or equity contribution of property value by NHF applicants in the following proportion: N5 million and below, 10 per cent; above N5 million up to N10 million, 20 per cent; while above N10 million up to N15 million attracts 30 per cent down payment or equity contribution.
The primary mortgage operators claimedÂ that it is illegal for FMBN to expand mortgage loan originators to on lend NHF loan, contending that relevant provisions of the subsisting NHF Act do not give FMBN the powers to take such decisions, until the Act is duly amended.
They also demanded to know why the management of the FMBN has not been holding the quarterly consultative meeting with them since April last year.