[PDF] - OU OUTLINE TLINE Key$Stats$on$Nigeria$ PDF Document

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GROWING THE MORTGAGE MARKET TO ENABLE BROADER

ACCESS TO HOME OWNERSHIP IN NIGERIA CHII AKPORJI, PH. D

DIRECTOR, POLICY, STRATEGY & PARTNERSHIPS

OU OUTLINE TLINE

Key$Stats$on$Nigeria$
Overview$of$the$Mortgage$Market$in$Nigeria$
Enter$NMRC$
Business$Overview$
Market$Development$Ini@a@ves$
Conclusion$
Q$&$A$

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NIGERIA: NIGERIA:-KEY-S

KEY-STATIS

TISTICAL-D TICAL-DATA A

Exchange)Rate:)US$)1) Nigerian)Naira)197)(22nd)Oct.)2015)) Major$Ci@es$ Lagos,$Abuja,$Port$Harcourt,$Kano$ Popula@on$ 173,615,$345$m$ Popula@on$Growth$Rate$ 2.79%$ Urban$Popula@on$(%$of$Total)$ 46.09$ Urbanisa@on$Growth$Rate$ 4.68%$ GDP$Growth$Rate$ 5.39%$ GDP$per$capita$(US$)$ 3.005.51$ Mortgage$as$%$of$GDP$ 0.58%$ Prime$and$Minimum$Lending$Interest$Rate$ 16.90$ No.$of$Mortgage$Ins@tu@ons$ 40$ No.$of$Commercial$Banks$ 21$ Ease$of$Doing$Business$(WBG$_$2014,$2015)$ 175$(2014);$170$(2015)$

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ENTER-THE-NIGERIA-MORTGAGE-REFI FINANCE-COMPANY

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NM NMRC-HIGHLIGHT C-HIGHLIGHTS

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BU

BUSINE INESS-OBJ

OBJECTIVE

TIVES--

To$encourage$financial$ins@tu@ons$to$increase$their$mortgage$lending$by$

providing$them$with$long$term$funding;$ $$

$To$increase$the$maturity$structure$of$mortgage$loans$and$assist$to$reduce$

mortgage$rates;$ $

$To$increase$the$efficiency$of$mortgage$lending$by$taking$a$lead$role$in$proposing$

changes$to$the$enabling$environment$for$mortgage$lending$as$well$as$by$ standardising$mortgage$lending$prac@ces$of$financial$ins@tu@ons;$and$ $$

$To$introduce$a$new$class$of$high$quality$long_term$assets$to$the$pension$funds$

and$other$investors$

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SLIDE 6

SIGNIFICANT)MILESTONES)

Drawdown$On$Ida$Subordinated$Loan$
Model$Mortgage$And$Foreclosure$Law$
FGN$Guarantee$
Review$Of$Legacy$Loans$Porfolio$

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First$Bond$Issue$
First$Set$Of$Refinancing$Of$Mortgages$

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FMDQ$Lis@ng$

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MA MARKET ET/BUSIN USINESS-DEV SS-DEVEL ELOPMEN PMENT-IN

INIT

ITIA IATIV IVES-; S-;-1

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UNIFORM UNDERWRITING STANDARDS

NMRC$has$spearheaded$the$development$of$industry$lending$standards$to$promote$efficiency$and$

mi@gate$the$legal$and$opera@onal$risks$inherent$in$mortgage$lending$by$ensuring$quality$ collateral,$adequate$property$@tle,$proper$registra@on,$enforcement$of$legal$mortgages,$and$ maintenance$of$efficient$collec@on$processes.$

NMRC’s$Uniform$Underwri@ng$Standards$for$Eligible$Mortgage$Loans$was$published$in$January$

2015.$$

All$mortgages$to$be$refinanced$by$NMRC$must$conform$to$the$Uniform$Underwri@ng$Standards$as$

published$or$amended$from$@me$to$@me.$$ $

The$Uniform$Underwri@ng$Standards$act$as$industry$standards$for$gran@ng$home$mortgage$loans$

to$borrowers$that$will$qualify$for$NMRC$refinancing$facility,$thereby$promo@ng$efficiency$and$ mi@ga@ng$the$mortgage$financing$risks$in$the$markets$well$as$lead$to$more$affordable$home$

wnership$in$Nigeria.$

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MA MARKET ET-DEV

DEVEL

ELOPMEN PMENT/BUSIN USINESS-O SS-OBJE JECTIV IVE-; E-;-2

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Reach$out$state$governments$as$key$partners$in$the$set$up$and$opera@onaliza@on$of$the$NMRC,$

as$well$as$cri@cal$to$the$growth$of$the$mortgage$and$housing$sector$in$Nigeria.$ $

21$State$Governors$have$commiked$to$suppor@ng$the$NMRC$ini@a@ve$and$to$collabora@ng$to$

create$the$enabling$environment$for$mortgage$origina@on$to$be$refinanced$by$NMRC$in$key$areas$ under$their$jurisdic@on.$$ ! Property$Registra@on$ ! Enforcement$of$Mortgage$Property$ ! Access$to$Serviced$Land$

A$framework$dral$Memorandum$of$Understanding$is$usually$agreed$to$by$both$par@es$to$govern$

the$partnership$between$the$state$and$the$NMRC.$$ $

MoU$with$Kogi$State$formalized$$

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MARKET)DEVELOPMENT/BUSINESS)OBJECTIVE)M)3)

A$cri@cal$developmental$role$set$for$NMRC$on$its$establishment$is$the$promo@on$of$legisla@ve$

reform$by$proposing$a$Model$Mortgage$and$Foreclosure$Law$for$adapta@on$by$frontline$states$to$ fast$track$the$process$of$crea@ng$legal$mortgages,$ensuring$@mely$resolu@on$of$disputes$and$ crea@ng$efficient$foreclosure$processes.$$$ $$ " The$Model$Mortgage$&$Foreclosure$Law$calls$for$the$crea@on$a$state$Mortgage$Board$as$a$one_ stop_shop$to$facilitate$accessible$and$affordable$mortgages$for$the$benefit$of$residents$of$the$ State.$$ " Other$func@ons$to$be$undertaken$by$the$Board$under$the$supervision$of$the$Commissioner$for$ Housing$in$the$first$Phase$of$roll$out$are$as$follows:$$

— Advising)the)state)on)the)funding,)administraVon)and)structure)of)the)State)mortgage)finance) programme;)) — ImplemenVng)and)honouring)on)behalf)of)the)State)all)obligaVons)in)any)agreement)made)between)the) State)and)other)parVes)with)regards)to)any)mortgage)scheme)for)the)provision)of)funds)for)land)

wnership)or)development)of)real)estate)in)the)State;))

— Encouraging,)promoVng)and)coordinaVng)all)forms)of)research)concerned)with)the)mortgage)lending) industry)as)it)relates)to)economic)wellMbeing)of)the)State)and)its)residents,)) — The)stamping)and)registraVon)system)relaVng)to)mortgages)in)the)State,)the)mode)of)applicaVon)for) Governor’s)consent)or)the)consent)of)the)appropriate)Local)Government)Area)relaVng)to)mortgage) transacVons,)and)generally)to)disseminate)same)to)the)State)government)and)the)public.))

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MARKET)DEVELOPMENT/BUSINESS)OBJECTIVE)M)4)

MMFL – A PLATFORM FOR POLICY DIRECTION ON HOUSING IN THE STATE

Provide$a$plaform$for$the$priori@za@on$of$housing$in$the$state.$The$crea@on$of$a$separate$

mortgage$registry$dis@nct$from$the$land$registry$(or$a$specialized$unit$within$the$current$land$ registry)$will$assure$ci@zens$of$the$government’s$commitment$to$providing$housing$in$the$state.$

The$MMFL$will$create$a$framework$for$the$state$government$to$set$housing$policy$agenda$going$

forward$as$the$mortgage$board$to$be$created$under$the$Law$will$con@nually$make$progressive$ policies$that$will$be$pro$affordable$housing.$ INVESTOR PROTECTION

The$bill$will$foster$proprietary$rights$of$poten@al$investors$in$the$state$by$providing$security$of$

assets$and$land$@tles$

This$is$possible$because$of$the$op@on$provided$to$investors$under$the$MMFL$for$enforcing$land$

related$obliga@ons$without$the$current$uncertainty$around$foreclosure$in$the$extant$law$on$ mortgages$(i.e.$the$Conveyancing$Act)$ REVENUE FOR THE STATE

The$MMFL$provides$for$a$global$fee$for$perfec@on$of$land$and$mortgage$transac@ons.$This$global$

rate$will$be$a$reduced$rate$rela@ve$to$the$current$cost$of$perfec@on$in$most$states$

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SLIDE 9

MO MOVIN ING-F

FORWARD

D

Second$Equity$Raise$
No$of$Mortgages$to$be$Refinanced$
Mortgage$Pipeline$
New$Products$Development$
MoUs$with$states$signed$and$MMFLs$Passed$

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