Standardizing the mortgage Market
Promoting the adoption of global operational standards by key players in the Nigerian housing and mortgage sector is a key pillar of NMRC’s operations.
A notable milestone in is the development and institutioning of the Uniform Underwriting Standards (UUS). NMRC worked with key industry stakeholders like the Central Bank of Nigeria (CBN), the Mortgage Bankers Association of Nigeria (MBAN), the Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Deposit Insurance Corporation (NDIC) to develop and streamline mortgage underwriting standards to widen the net of potential borrowers and enhance financial inclusion.
The standards, which are now used by all NMRC member mortgage lending institutions for processing mortgage applications promote uniformity, efficiency and mitigate mortgage financing risks.
The industry-wide use of the mortgage underwriting standards has led to:
- a significant increase in the turnaround time for processing mortgage loans
- zero default rate on mortgage portfolios of NMRC member banks
- increased collaboration by housing value chain players.
Currently operational are Uniform Underwriting Standards (UUS) for the following sectors of the economy:
- The Formal Sector
- The Informal Sector
- Non-interest Banking
- Diaspora Nigerians
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.