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Mortgage Banking Institutes - NMRC

Nigeria Mortgage Refinancing Company

 The Nigeria Mortgage Refinance Company Plc (NMRC) incorporated on the 24th of June, 2013 is a public limited liability company registered with the Securities & Exchange Commission (SEC) and regulated by the Central Bank of Nigeria (CBN) as a non-deposit taking financial institution with core activity of refinancing mortgages.

The initiative of NMRC is a strategic response to the moribund challenges of housing in Nigeria, this led the Federal Ministry of Finance (FMoF) through the Central Bank of Nigeria and other development partners (WB, IFC) to initiate a Housing Finance Programme that will consist of a public-private sector managed mortgage liquidity facility run by NMRC.

NMRC is set up to bridge the funding cost of residential mortgages and promote the availability as well as the affordability of good housing to Nigerians by providing increased liquidity in the mortgage market though the mortgage and commercial banks.

The company is driven by substantial private sector participation consisting of commercial banks, primary mortgage banks, insurance companies, private equity investors and international financial institutions through the Ministry of Finance with the public purpose of developing primary and secondary mortgage markets, raising long-term funds from both domestic capital market and foreign markets to provide accessible and affordable housing to Nigerians in Nigeria.

NMRC’s mission is therefore to provide loans to qualified financial institutions by issuing bonds in the capital market. The successful implementation of this programme on conservative estimate sets a growth process in motion that will deliver over 75,000 homes per annum, generate and sustain at least 300,000 direct and 488,000 indirect jobs at the initial phase of the programme.

Some pilot States in Nigeria where the governors have already committed to supporting the NMRC initiative by creating an enabling environment for mortgage orientation to be refinanced by the company include Abia, Anambra, Bauchi, Bayelsa, Delta, Edo, Ekiti, Enugu, Gombe, Kaduna, Kano, Kwara, Lagos, Nasarawa, Ogun, Ondo and the FCT.

One of the most critical non-transactional tasks NMRC will take on is the standardization of the mortgage industry in Nigeria. NMRC as part of its objective will govern the servicing of mortgage loans by the mortgage originators and have the right to audit records of all mortgage loans refinanced by NMRC to ensure high quality mortgages that meet the uniform underwriting guidelines.

NMRC Nuggets

 Nigeria Mortgage Refinance Company is established to encourage financial institutions to increase their mortgage lending by providing long term funding.

 NMRC will increase the maturity structure of mortgage loans & reduce mortgage rates.

 The efficiency of mortgage lending will increase as the company takes a lead role in proposing formidable changes to enable a positive environment for mortgage lending.

 NMRC has an oversight function to standardize mortgage lending practices of financial institutions.

 The NMRC is a wholesale financial institution which refinances portfolios of mortgage & commercial banks rather than originating individual mortgages and will cater for financial institutions rather than individual borrowers.

 The Housing Finance Programme is firmly supported by the Ministry of Finance with assistance of the Central Bank of Nigeria, World Bank and other development partners (DFiD, GeMS3).