This is a research on mortgage Banking in Nigeria Historical development Achievement and problems the research sorted to know for the existence of mortgage banking has been fect by the people and to the extent their objectives has been achieved.
In carrying out this research the researcher made us of oral interview and questionnaire and the finding were that mortgage bank role towards the economic development has been felt through many areas of their promotional activities such as loan advancement home and house revaluation and refurbishment e.t.c.
Therefore, it was this base that the researcher made the conclusion that mortgage banking has been appreciated by the people and that their major objectives has been greatly achieved.
1.1 purpose of the study
2.1 Functions and importance of mortgage banking
3.1 Sources of data
CHAPTER FIVE
The Nigeria building society was the mortgage institution to be established in 1956 to finance house building not necessity home ownership. It was financed by substantial equity by the colonial later common wealth development corporation (CIX) and the federal and regional government in the regions housing corporation were established, pretty to build and save or let estates.
Housing and mortgage finance represents the third area where special intervention is made necessary by the shear magnitude of the problem.
The federal mortgage bank of Nigeria (FMBN) was established in 1977 as a fully owned federal government housing development finance agency under the federal mortgage bank act No 7 of 1977. This step followed the dissolution of the Nigeria building society (NBS) whose assets and liabilities were taken over by the FMBN. The Nigeria building society was self incorporated in December 1956 with a capital of N3.25m and jointly owned by the common wealth development corporation (CDC) the federal government of Nigeria and the eastern Nigeria government in the proportion of 60 percent, 31 percent and 9 percent respectively. The federal military government however took over the (CDC) share of the time federal mortgage bank of Nigeria (FMBN) was established in 1977 was N20 million (FMBN 1987 Dimy) .
The Dutch first of Bereuschot morel Bosboom (management consultant) was contracted by the federal government to supervise the take off the new bank for a 3 years period from 1977.
With the exist of the Dutch management consultant in July 1980 the management operations of the bank become wholly indigenous at the same time there was also a changer in the authorized share capita and ownership structure of the bank the authorizes share capital increased to N150 million jointly subscribed by the federal government and the central bank of Nigeria in the proportion of 60 percent and 40 percent respectively the federal government appoint the chairman and mebers of the board of Directors By 1931, the bank has estabilished branches in all the state capitals. Underscoring its national out look since than additional forty-three (43) home savings center had been established in major area outside the state capitals. This is decidedly to expand its sprend of service delivery as well as to widen its savings mobilization base.
The 19 branch offices were organized into zones otherwise known as area officers.
Each branch office is self-mortgage loans up empowered to approve individual mortgage loans up to N65,000.00 which has to be rectified by the head offices for the time being’s the low lending rate and longers maturity spread of FMBN loans have led to an influx of mortgage applicant from allux over the federation since 1977 to date.
The mortgage assets of the bank have been increasing steadily over the years 45 at 30th June 1977, the next mortgage assets of the bank was N75 million, but as at 31st December 1982 the Net assets of the bank stood at n326 million between 1977 and may 1986, a total loan disbursement of N365, 560,130 was made to 12,000 mortgages (federal mortgage bank of Nigeria Diary of 1987).
In 1980, a wholesome loan type was introduced to serve the loan requirement of private estate developers, state Housing Corporation and big commercial ventures.
There maybe several purposes opened to any one carrying out a research of this nature but my own purpose are narrowed down as follows.
a. To examine the extent to which mortgage bank have contained to the federal government and central bank stipulated credit guideline to operators of national housing fund scheme.
b. To evaluate the reason why despite federal government funding they feel reluctant to extend credit to operators of national housing fund.
c. To find out the purpose of mortgage creation.
d. To find why the guideline are not workable within the context of the present mortgage structure without jeopardizing their business interest.
e. To identify the problem of mortgage bank as regards the disbursement of loans to the national housing fund and actual causes of loan disbursement delay.
f. To investigate as for as mortgage banking is concerned and its resultant effect to the people and the overall economy.
g. To also examine other area of the guidelines that constitute problem.
the research is greatly concerned over the relevance of the study to the entire society and more importantly tot e operators of the National Housing fund scheme. The study was undertaken to find how and to what intent the mortgage bank loan disbursement policies had helped the operators of the nation housing to realize the general aspirations of the government on house for all by the year 2000. I have the believe that if the findings of this work will be followed, it will effort the contributors an the general public the opportunity to start investing in the mortgage development by floating mortgage institutions.
Considering the large geographical nature of Nigeria and scattered federal and state ministries, the study will be carried out within the geographical boundaries of Aba, Abia state and Enugu, Enugu State of Nigeria the potential respondent will be from workers of federal and state ministries and staffers of selected mortgage institutions.
There were a lot of setback that intended to hinder the realization of the objective of the study. First is the none availability of data on this subject, most of the data for this work could only be obtained from the federal mortgage bank and some many mortgage institution which in most of times they feel reluctant in complying with research interview.
Other limitations include none return of the questionnaire in time the other constraint is time factor combining lectures with the research work.
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