Home General News CBN 6Billion Set-up into Mortgage Companies

CBN 6Billion Set-up into Mortgage Companies

The central Bank of Nigeria (CBN) in a recent announcement, spoke about the introduction of mortgage guaranty companies.

This will reduce credit risk in the various mortgage finance sectors and ease access to mortgage loans and services.

 


The Central Bank has said the objective and aims of the MCGs are to lend supportive hands to the mortgage originators (primary mortgage and commercial banks are to benefit from this).

The scheme will in no doubt increase mortgage lending and guaranty no losses from borrowers. CBN as set the minimum capital requirements of N6billion for the smooth running of MGCs over the country.

This will deepen the mortgage banking sub sector via market access to mortgage finance loans the basic requirements as stipulated in the regulation for lenders is based on security residential mortgage assets, requirements of paid up capital, requirement of permissible investment of liquidity.

On the other hand, MGCs are barred from acceptance of demand, savings and time deposit such as financing real estate, construction or management of pension (funds and schemes), granting consumer or commercial mortgage loans.

Avatar
360APROKO
Champion of Online News

Must Read

Those who kidnapped me are herdsmen – RCCG pastor

The female pastor of the Redeemed Christian Church of God, RCCG, Mrs Ibelegbo Chidinma, who was kidnapped yesterday at Ijebu Ode and has regained her...

El Paso shooting – Many people dead in Texas

El Paso shooting: A man has been arrested after multiple people were shot, some fatally, inside a Walmart in El Paso, Texas on Saturday. The shooting...

Cristiano Ronaldo loses bid to get Las Vegas rape lawsuit dismissed

Cristiano Ronaldo has lost a bid for dismissal or complete secrecy in a lawsuit by a Nevada woman who accused him of raping her at...

Governor Nyesom Wike sacks Rivers State University Vice Chancellor

Rivers State Governor, Nyesom Wike has sacked the Vice Chancellor of the Rivers State University, Prof. Blessing Chimezie Didia of his appointment with immediate...

Popular yahoo boy in Port Harcourt arrested by EFCC

A yahoo boy in Port Harcourt, Wealth Wilson who was arrested by operatives of The Economic and Financial Crimes Commission, EFCC was on Friday arraigned before...