17th June, 2020
The Ogun State Government has taken a significant procedural step forward towards adopting and passing the Model Mortgage Foreclosure Law (MMFL). On May 22, the bill for the State Mortgages and Foreclosure Law before the State House of Assembly successfully passed second reading.
The second reading of the bill marks an important milestone in the legal process that would see the Governor eventually giving accent and signing the bill into law in law.
The bill garnered broad support of legislators as a critical legal framework for regulating and enhancing housing development, stimulating increased access to affordable housing for Ogun citizens and unleashing the capacity of the real estate sector in the state.
The Model Mortgage Foreclosure Law (MMFL) is one of the housing market reform initiatives developed by the NMRC in collaboration with housing industry stakeholders to create an enabling environment for housing investment. The Law aims to tackle longstanding challenges associated with registering and transferring interest in land.
The law provides for the creation of state mortgage boards as one-stop-shops for facilitating mortgage administration, property registration and title perfection processes in addition to establishing non-judicial foreclosure processes.
The law is designed to incentivize investment in housing and mortgage sectors with multiplier effects such as increased home ownership, jobs and wealth creation as well as enhanced Internally Generated Revenues (IGR).
In July 2017 Kaduna state became the first state in the federation to pass the law. Lagos state has also updated its own Mortgage and Foreclosure law to reflect the stipulations outlined in NMRC’s Model Mortgage and Foreclosure law.
Mr Kehinde Ogundimu
M.D CEO, NMRC