NMRC refinances N18.40 billion mortgages as seven states plan foreclosure laws

Notwithstanding the harsh operating environment, the Nigerian Mortgage Refinance Company (NMRC) has financed a total of ₦N18.40 billion loans from ₦N17.02 billion in 2018.

The company has also signed a Memorandum of understanding with Edo State Government for the adoption of the Model Mortgage and Foreclosure Draft Bill and begun talks with seven other states. The states are Ekiti, Akwa Ibom, Ogun, Kwara, Nasarawa and Niger States.

NMRC Chairman, Mr. Charles Adeyemi Candide-Johnson, who disclosed this during the company’s Annual General Meeting held at the Eko Hotel, Victoria Island, Lagos, said, there cannot be an efficient and thriving primary and secondary market for housing in Nigeria without the requisite legal framework.

Candide-Johnson said: “To make housing finance more affordable to the residents of Kaduna State, we signed a ₦N3 billion blended finance agreement with the State Government and FHA Mortgage Bank with a view to providing single-digit interest rate mortgages.”

According to him, the macroeconomic environment as a whole remains uncertain, as a result of the impact of the COVID-19 outbreak. “We have lowered our expectations for domestic growth in 2020. As we look into 2020 and beyond, we are committed to executing upon our long-term strategy, strengthening our partnerships and investing in transformational initiatives in housing finance.

He said, “the biggest lesson from COVID-19 is that though the operating environment can shift dramatically overnight, we can be protected by our core values which transcend market conditions: excellent service to our clients, robust risk management, ensuring results are sustainable through operational excellence and being a great place to work.

“By sustaining these core values, we will be well- positioned to pursue our mission strongly in the years ahead and to deliver good returns to our stakeholders.

In the company’s 2019 financial results, NMRC gross earnings increased by 36 per cent from ₦N7.09 billion in 2018 to ₦N9.62 billion in 2019. Profit before tax stood at ₦N3.09 billion, an increase of 60per cent over the ₦N1.94 billion recorded in 2018.
 
Candide-Johnson noted that even though progress is being made, the company remains committed to its mandate of making housing finance more accessible and affordable for Nigerians, particularly in an era where housing availability has come to play a critical role in successfully mitigating the spread and impact of Covid-19.
 
NMRC’s Managing Director, Mr. Kehinde Ogundimu in his comments said, the total assets increased from ₦N69.28 billion in 2018 to N72.87 billion in 2019.

He revealed that NMRC obtained regulatory approval to expand refinancing activities to all banks that meet risk acceptance criteria.

NMRC raises long-term funds from the capital market, to enhance access to affordable housing finance in Nigeria. In July 2015 NMRC successfully issued a 15-year N8 billion Series 1 Bond under its N140 billion medium- term Note Programme, backed by an unconditional Federal Government of Nigeria guarantee.

In June 2018, NMRC again successfully raised N11billion from the capital market through a Series II bond issue. These funds have been deployed to the refinancing of the mortgage portfolio of NMRC member Primary Mortgage Banks (PMBs).