Still waiting for states legislature on model mortgage reform

The legislature in states of the federation where new ones were elected early this year should have settled down now for legislative business. While new members are learning the rope, old and returning members are perfecting their arts for effective legislative duties.

Expectedly and as is characteristic of Nigeria, virtually all of these legislative houses had a number of bills pending which have been inherited by the new assembly. One of such bills which the sponsors wanted passed urgently was the adoption of a model mortgage and foreclosure law by the states.

The bill was packaged as part of efforts at growing a mortgage system that would drive affordability in the mortgage sector by proposing a model mortgage and foreclosure law by key pilot states including Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Enugu, Kano and Ogun states.

At the fore-front of the drive for this law is the Nigerian Mortgage Refinance Company (NMRC) which is riding on the relative success it has achieved in the past few years of its establishment and pushing for the adoption of the law by the states.

Given the importance of the law, mortgage sector stakeholders are urging the new states assembly to resume deliberations on it with a view to making their respective states adopt the law and pave the way for improved activities in the mortgage sector and, by extension, in the property market.

What NMRC is driving at, according to one its directors whose primary mortgage bank is a major shareholder in the company, is to get various states houses of assembly to pass foreclosure laws as a prelude to mortgage-backed affordable housing delivery.

This idea, when it filtered out, was good news and remains so for home seekers who may need mortgage facility because foreclosure law, upon adoption, fasttracks the process for creating legal mortgages, ensuring timely resolution of disputes and creating an efficient foreclosure process.

According to the authorities of the mortgage refinancing company, the model mortgage and foreclosure law is in its final form for engagement with 21 pilot states committing to the implementation of an enabling environment for the development of the mortgage market.

The company hinted that it would be focusing on building capacity and completing outstanding operational activities. At various times, it has demonstrated uncommon resolve to live out its mandate with refinancing of some mortgage banks.

Mortgage operators have described this refinancing as a milestone and, according to Ben Akaneme, Imperial Mortgage Bank’s managing director, “this is an outstanding achievement in the march towards the realisation of affordable and single-digit interest rates for mortgages in Nigeria. He assured that his bank would continue to strive to achieve its mission of enabling easily accessible and affordable mortgages to Nigerians in order to ensure housing for all.

NMRC is quite conscious of the demands and obligations inherent in the Nigerian business environment as it assures that it will continue to anchor all its services on global best practices, good corporate governance and strict risk management practices.