In the next chapter, the institutions get their fund from a good example is from the central bank of Nigeria (CBN) in form of loan. In addition to this mention was made here about the role or objectives of mortgage banks which includes providing both commercial, merchant and non-financial services.
Also, you will see the problems faced by the mortgage institutions and the recommendations that are given to remedy the problem.
CHAPTER ONE
CHAPTER TWO
CHAPTER THREE
CHAPTER FOUR
CHAPTER FIVE
BIBLOIGRAPHY
One of the most important responsibility of any good government is to implement its housing policy (to provide housing for all Nigeria year 2004 A y. The central Bank in connection with the federal government of Nigeria is to oversee the realization of this dream through some financial institutions. The federal government after all deliberations then promulgated Decree 53 in 1989 which lead to the establishment of the mortgage banking institutions. The institution were to provide loans(especially long and medium terms) to respective Nigerians who own houses.
They will also the low income earners to be taking part in the construction of development plans through the Nigeria Housing Authority (NHA)
In 1957, the Nigeria Building Society (NBs) was established. Also in 1977, the NBs during the General Olusegun Obasanjo regime was renamed the federal Mortgage Bank of Nigeria (FMBN). This was dome under Decree of 20th January 1977 following the acceptance by the federal Government of the recommendation of a financial review panel (FRP).
Since its establishment in 1977, the federal mortgage Bank has remained institutionally central in the housing finance system with respect to the prescription in its enabling decree. The bank is expected to, inter-alia, perform the following function:-
With this change in structure in 1977 it was required to co-ordinate housing policy and land development financing in the country.
Between 2974 and 2000 the federal mortgage Bank of Nigeria (FMBN) have been able to establish primary mortgage institutions ( PMI) all over the federation. About three hundred and ten (310) of such PMI are so far listed far operation between 1977 to 1994 255 (two hundred and fifty five . this is to reflect on the FMBN national outlook and to spearhead the extension of housing finance services to every part of the federation. This branch network programme was also informed by the absence of other housing finance agencies. To be sure, there is a housing corporation of its equivalent in each state. But the operations of these agencies are more predisposed to property development than emphasis given to savings mobilization in the operations of these agencies was perhaps under standable. The non-specialized financial institutions (i.e. commercial and merchant banks) have always been the better competition, this is a consequences of their financial operations.
The result of all these was a general deterioration in the housing conditions in this process there has also been the construction of some of the most luxurious housing in the world. It was this sectoral setting that led to the new National housing policy which was formally launched on 20th Feb 1991.
It should be noted that the Mortgage institution decree is essentially an integral component of the housing policy. It empowers each institution to subject to the provision of the banking Act 1969 (now superceded by decree 26/91).
Among other things mortgage banking in Nigeria has the following objectives:-
Till now because of the long expectations that has passed – in – waiting far the housing and national housing fund to be implemented, the situation has reduced mortgage institution into financial stress. The result today is that depositors are no longer confident that their money which is not invested is in a safe hand.
SUB-PROBLEMS:
RESEARCH QUESTIONS AND HYPOTHESIS
It is believed by developed and developing nations of the world that to achieved perfect development both in economy and economic structure, the issue of the destitute of that nation must be first of all be addressed and such hundreds of thousands or hundreds of millions of her destitute settled before a perfect growth. It is because of this imperfection that the researcher now took the pain to ensure these following research questions in this project work.
Some of the significant of mortgage bank in Nigerian economy are to:-
This research work will cover “The role of Mortgage Banking in Nigeria Economy”
LIMITATIONS OF STUDY
It is quite obvious that one must generally sacrifices details for brevity in a proper study of this, nature.
The research work is limited by several factors.
Firstly, because of fund and time factor, the study was limited to Nigeria. This constraints also restricted the researchers personal search of a broader section of officials of other mortgage institution.
Secondly as a result of the peculiar circumstances of the mortgage and financial institutions, under the same umbrella of the central bank and government which control their activities.
Methodology:- This is the study of method or ways to be adopted in a given direction.
Policy:- A plan of action or a state of aims and ideals made by a government, a business company or an individuals.
Mortgage Bank:- A bank which gives or lend loans to individuals to enable them build their own houses or renovate an existing one.
Loan:- This is something usually money lent to another person with interest repayable at a fixed time.
Fund:-This is a sum amount of money stipulated for a particular period in another way, resources in the (public) funds (i.e. the stock of the national debts as a form of investment
Building Society: An institution form in the period of industrial revolution to their member to purchase their own homes/houses.
Home/house:- This refers to the house owners parents/family are also staying. Put differently, it is the place where somebody lives.
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