Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Mr Gimba Ya’u Kumo has said that the bank will raise N14 billion Mortgage-Backed Bond (MBB) from the capital Market in July 2011. Ya’u Kumo disclosed this in a paper on “Opportunities for Low and Middle Income Earners in National Housing Fund” at the 11th Lagos Housing Fair.

Ya’u Kumo, who was represented by Mr Bola Ogunsola, an Executive Director in the bank, said the amount would be from some mortgage loan originators, “Currently, a pool of mortgages of about N14 billion from mortgage loan originators is being processed for the second tranche of the MBB. “We are looking forward to be in the capital market in July and this amount will bring the cumulative beneficiaries under the MBB programme to 16, 108 home buyers.”

He said FMBN successfully floated N26 billion in the first tranche of the N100 billion MBB, The fund was used to refinance the civil servants’ acquisition of 9,525 Federal Government residential houses sold in the FCT, Ya’u Kumo said that the investors in the first tranche had been getting their coupons payment every May and November of each year, adding that the payment had been up to date, The Managing Director said that the Mortgage loans originators were seven in number.

They include the United Banks for Africa, Oceanic Bank, Abbey Building Society and Aso Savings and Loans, amongst others, He said that the National Housing Fund (NHF) has funded many housing estates nationwide. According to him, about 53.518 houses have been developed through the Primary Mortgage Institutions and Estate Development Loans.