NATSAVE, NHEF INK MORTGAGE DEAL

NATSAVEwill be processing mortgage loans for the National Housing Empowerment Fund (NHEF) and manage its K1 billion revolving fund following an agreement which has been signed by the two parties.

Under the agreement, NATSAVE will offer loans that will facilitate the provision of affordable housing to public and other eligible investors.

NATSAVE is also expected to manage over one million accounts under the NHEF, says Bank’s acting Chief Executive Officer, Keith Hamusute.

Mr Hamusute explained that the agreement would translate into effective and efficient processing of mortgage loans given to NHEF members and the general public interested in buying plats, farms and houses either through outright purchase or construction loans.

“NATSAVE will setup and manage the NHEF K1 billion revolving fund by creating a separate product code where all accounts for individual member contributions will sit.

“Employers and individual members will be depositing member contributions in these accounts,” he said in Lusaka during the signing ceremony of the Memorandum of Understanding(MoU).

Mr Hamusute said deposits credited to the individual accounts under the fund would be maintained as savings or investment accounts for a minimum period set in the MoU after which members could withdraw the funds with savings accounts interest if a housing unit of their choice was not built for them within a minimum period.

He projected increased fee income from corporate and individual accounts as well as from member’s savings scheme and mortgage administration as result of the agreement.

“This collaboration will leverage on NATSAVE’S online solutions and infrastructure to deliver effective service to the members of the fund,” Mr Hamusute said.

NHEF Chief Executive Officer, Dorothy Soko, said the Fund sought to have a membership, on a voluntary basis, contribute to the fund to create a pool of affordable capital for onward lending to fund members.

Ms Soko said the members would be credited with interest and would be able to withdraw their investment after an agreed period of time.

She also said the major challenge faced by the real estate sector was affordable finance, and availability of housing units, hence its resolve to offer affordable housing to mitigate the problem.