Market Development & Advocacy
Housing Market Development
A robust, efficient and functional housing market that operates based on global standards is critical to attracting the required investment to catalyze housing development and homeownership.
NMRC, leverages its strategic positioning in the mortgage industry value chain to conceive and drive initiatives that are designed to develop and unlock the potential of the housing market for sustainable growth.
Model Mortgage Foreclosure Law (MMFL)
To create the enabling environment for mortgage origination and housing investment, NMRC drives an advocacy initiative that is focused on the nation-wide adoption and passage of a draft Model Mortgage and Foreclosure Law by state governments.
The law advocates the creation of state mortgage boards as one-stop-shops for facilitating mortgage administration, property registration and title perfection processes in addition to the instituting of non-judicial foreclosure processes.
The passage of the law incentivizes investment in the housing and mortgage sectors in the state with multiplier effects such as greater home ownership, jobs and wealth creation as well as enhanced Internally Generated Revenues (IGR).
NMRC has executed Memoranda of Understanding with Kogi, Cross River, Kaduna and Delta States to facilitate the passage of the draft Mortgage and Foreclosure Law (MFL) as a legislative Bill by their respective Houses of Assembly.
In July 2017 Kaduna state became the first state in the federation to pass the law.
Lagos state has since updated its own Mortgage and Foreclosure law to reflect the stipulations outlined in NMRC’s Model Mortgage and Foreclosure law.
ESTABLISHMENT OF A STATE MORTGAGE BOARD TO AMONGST OTHERS
- create a conducive environment for accessible and affordable mortgages
- advise the Governor on the funding, administration and structure of the State mortgage finance programme or policy for the benefit of the residents of the State;
- implement and honor on behalf of the State all obligations in any agreement made between the State and other parties with regards to any mortgage scheme for the provision of funds for land ownership or development of real estate in the State;
- report to the State any default or breach on the part of any of the parties to any obligations or requirements and recommend and seek the approval of the State on ways of remedying such default or breach by a defaulting party;
- encourage, promote and co-ordinate all forms of research concerned with the mortgage lending industry as it relates to economic well-being of the State and its residents, the stamping and registration system relating to mortgages in the State, the mode of application for Governor’s consent or the consent of the appropriate Local Government Area relating to mortgage transactions, and generally to disseminate same to the State government and the public;
- encourage and actively promote the use of modern information and communication technology within the State for purposes connected with the implementation of this Law, including digitization of the interface between the Land Registry and the Mortgage Registry, and the processes leading up to the perfection of mortgages.
ESTABLISHMENT OF A STATE MORTGAGE REGISTRY TO AMONGST OTHERS
- Receive and process applications for consent of the Governor or the appropriate Local Government Area to mortgage transactions;
- Receive and process applications for the registration and release of mortgages;
- Keep and maintain a register of mortgages as well as a register of applicants whose mortgages are deemed registered;
- CREATION OF MORTGAGES
- JUDICIAL AND NON-JUDICIAL INTERVENTION WITH RESPECT TO MORTGAGES
- ENFORCEMENT OF MORTGAGES
- DISPUTE RESOLUTION GUIDELINES
The Nigeria Mortgage Refinance Company(“NMRC”) is a Public Private Partnership arrangement between the Federal Government of Nigeria and private sector. It is a component of the Nigeria Housing Finance Programme initiated by the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria (“CBN”), Federal Ministry of Lands, Housing & Urban Development (“FMLHUD”) and the World Bank/IFC.
The Nigeria Housing Programme seeks to address the key barrier to developing accessible and affordable housing in Nigeria. It is designed to be implemented with parallel funded projects in land registration and construction sectors by the DFID and GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH).
NMRC provides mortgage-lending institutions with access to long-term finance at an affordable interest rate, thereby enabling mortgages to be issued by these institutions to Nigerians, at longer tenors and affordable rates. The provision of mortgage loans at longer tenors will provide the average working Nigerian citizens an opportunity to buy a home and conveniently pay for it.
The World Bank approved a concessional US$300 Million 40-year interest free International Development Association (IDA) loan to facilitate the execution of the Housing Finance Programme. US$250 Million of the IDA loan was disbursed in instalments to NMRC as Tier 2 Capital based on key performance indicators — it will be retained on NMRC’s balance sheet to provide credit support for NMRC’s bond issuances.