Refinancing Agreements

Master Purchase Refinance and Service Agreements and Supplements

NMRC enters into agreement with eligible Mortgage Lenders to an equitable assignment by way of sale, of the beneficial right, title or interest in all distributions of principal and interest and all prepayments received on or with respect to the Mortgage Loans, with recourse for a specified time (sale period). The equitable assignment by way of sale is documented under a Master Purchase, Refinance and Servicing Agreement (MPRSA) between NMRC and each Mortgage Lender.

The MPRSA sets out the general terms and conditions of the assignment of mortgage loans to NMRC. It also includes a Declaration of Trust by Mortgage Lenders that they hold in trust for NMRC, the distributions assigned to NMRC, and all monies received but not paid in respect thereof.

 

Catalysing Growth of the Mortgage and Housing Markets – Partnership with the State Governments:

A key component of NMRC’s business and market development initiative is its “Enabling Environment Programme”. This takes the form of a concerted engagement with state governments who statutorily, are the custodians of land in Nigeria, the ultimate goal being the institution of the enabling environment that would attract housing investment in the state and promote home ownership.

The framework for this partnership with the states is a Memorandum of Understanding outlining mutual accountabilities for both parties, with a particular focus on reforms in three key areas under the states’ jurisdiction:

  • Access to Serviced Land
  • Property Registration and Title Perfection processes
  • Institution of a Model Mortgage and Foreclosure Law (MMFL)

The MMFL calls for the creation a State Mortgage Board as a single window clearance mechanism to facilitate accessible and affordable mortgages for the benefit of residents of the State, and for the institution of a Foreclosure mechanism as the basis for arbitration in cases of defaults in mortgage repayments.

The engagement with the states is usually transaction driven with the NMRC leading a total package of potential public and private investors in housing, anchored on NMRC’s willingness to refinancing conforming mortgages created as a result.