By Yinka Kolawole
MORTGAGE Warehouse Funding Limited, MWFL, under its N20 billion asset-backed Commercial Paper programme said it has pre-financed its first series of mortgages to Trustbond Mortgage Bank Plc.
The firm, in a statement made available to Financial Vanguard noted that a total of four mortgages were pre-financed to the tune of N88.5m and funds have been disbursed to TrustBond Mortgage Bank Plc.
MWFL is a conduit created to provide short term funds to its member mortgage banks in Nigeria in order to help more intending home owners gain access to mortgage loans. It is designed to complement the Nigeria Mortgage Refinance Company, NMRC, in that whilst NMRC is licensed to provide long-term funding to the mortgage sector via secondary refinancing, MWFL serves to support the sector by providing short- term up-front funding.
Commenting on the development, Mr. Sonnie Ayere, Chairman of MWFL, said: “It is gratifying to finally see MWFL fund its first bank at a holding duration cost of 9.59 percent. Like everything else, proof of concept is most important and that hurdle has now been scaled.
The conduit is now looking forward to funding more of its member banks and giving them the firepower to go out there with a 100 percent confidence to give mortgage financing to Nigerian citizens wishing to get on to the property ladder”
Also reacting, Mr. Niyi Akinlusi, President Mortgage Banking Association of Nigeria (MBAN) stated: “The successful completion of Series 1 funding by MWFL with pre-finance of TrustBond’s mortgages of over N88 million is very significant for the mortgage industry and the larger economy. It is the last piece of the jigsaw puzzle in connecting the mortgage industry to the money market after linking the mortgage market to the capital market through the bond issuance activities of NMRC in the capital market. This signposts the beginning of continuous flow of liquidity from the money market to the mortgage industry and another major initiative in making Nigerians home owners and reducing the national housing deficit of over 20 million units.”