The Federal Mortgage Bank of Nigeria (FMBN) says it has expanded its lending channels to include other financial institutions. Mr Dauda Yusuf, Corporate Affairs Manager of the bank, disclosed this to newsmen on Monday in Lagos.
Yusuf, who noted that complaints by National Housing Fund (NHF) beneficiaries informed the expansion, added that the institutions included Pension Fund Administrators (PFAs), insurance companies and universal banks.
â€œ The recognition of other financial institutions such as pension fund administrators, universal banks and insurance companies as mortgage loan originators will overcome the present constraints encountered by contributors. The contributors can now approach any of these additional institutions to be duly accredited by FMBN to apply for NHF(National Housing Fund) loans,â€ he said.
He said that the expansion was part of the bankâ€™s re-branding initiatives to break the monopoly of Primary Mortgage Institutions(PMIs). Yusuf, however, said the recognised institutions must meet the necessary criteria to access NHF on behalf of beneficiaries. Yusuf also said the FMBN, NHF and PMIs laws would be replaced while the Insurance Act 2002 would be amended.
He said the bankâ€s board had already made its presentation to the House Committee on Housing and Habitat to fast track the replacement and amendment of the laws.
NHF, established in 1992, makes it compulsory for workers to contribute 2.5 per cent of their monthly salary toward buying, building or renovating their houses. The contributors to the fund are to benefit by applying for a loan through a PMI.