The Mortgage Banking Association of Nigeria, MBAN, has set a Ntrillion annual turnover for the Federal Mortgage Bank of Nigeria, FMBN.
This is as MBAN has advised the new management team of the FMBN to grow the financial capacity of the sector.
In a courtesy visit on the new Managing-Director of the FMBN, Mr. Madu Hamman, and his team in Abuja, weekend, MBAN said that the N1 trillion annual target would help the bank and the entire housing sector realise set goals more easily.
The association called for more reviews of the laws guiding operations in the mortgage banking sector in Nigeria.
Speaking during the visit, leader of the visiting team and President of MBAN, Mr. Ebilate Mac-Yoroki, expressed the need for the FMBN to automate the operations of the bank, even as it pleaded that primary mortgage banks are allowed fair opportunities to operate.
He said when FMBN decides to take advantage of the opportunities he said abound for the mortgage sector in the capital market, there would be enough funding to meet the several commitments it has on ground, including payment of dividends.
He demanded that the bank gives some latitudes to other primary banks operating along with it in the sector, including clearing the ambiguities surrounding the ‘single obligor’ policy, allowing them take advantage of the rent-to-own package, as well as giving preference to private mortgage banks to hold mortgage moneys that commercial banks currently hold.
According to him, “I’m a product of the capital market, I want to plead that the Federal Mortgage Bank utilizes all the opportunities we have in the capital market and we have also given you a target because you don’t just come as big men, work without target.
“Government will not give you target, but because we are private sector people, we are saying that from now on, your operational target should be in N1 trillion turnover every year. It means this year we’re already in June, we can accommodate N500 million turnover. That way we know that you will have a lot of money, you can pay dividend and so on.
“We also want to plead that you give optimum opportunities for all PMBs to operate, as many as possible, without compromising standards. If anybody has not committed any crime, maybe he has one or two regulatory issues to address, please try and help them so that we can have enough. So please, we want you to know that every PMP is ready to play in a role in this market is trying to accommodate us.
“The other question is, for us to operate, you must also help us operate at optimal levels. There’s this funny question of single obligor that is being raised in some quarters, we don’t know the meaning of single obligor. Money given to PMBs, they are like brokers, like I’m a stockbroker, I can have hundred billion from somebody to buy stock. If I buy, the commission is my own.
“We want to also say that we’ll work