1 November 2009
The Federal Mortgage Bank of Nigeria (FMBN) said it has signed a $1.6 billion partnership agreement with HSBC, UK's biggest bank, in order to pursue its mandate of assisting every Nigerian to own a house of their choice.
A statement from the bank's Deputy General Manager Corporate Affairs Dauda Yusuf said the bank has commenced liquidity facility provision for mortgage originators as an expansion of its secondary mortgage operations.
"Under this arrangement, loans will be bought off originators on recourse or non-recourse basis as a means to providing liquidity to the primary mortgage market", the statement said.
The statement said the bank will also introduce Mortgage and Title Insurance as new products to mitigate mortgage-related risks and ensure affordability. It is also expanding mortgage financing to the non-salaried informal sector that has long been neglected due to the lack of property titles, formal income and non-affordability.
According to the statement, the bank is poise to encourage formation of housing cooperatives as a major strategy to bridge the credit gap faced by disadvantaged economic groups and thereby expand the spread and depth of mortgage finance delivery through target groups like teachers, nurses, mission groups such as the Catholic missions and dioceses, organised Islamic organisations, trade groups, among others.
The bank also said that it has concluded plans to herald a rebranding campaign, which is centred on the pursuit of its mandate of assisting every Nigerian to own a house of their choice.
This will be executed under the bank's rebranding project, the statement said. The bank now has a new logo which says "Today's FMB... everybody deserves a home". The bank said the logo is primarily designed to soar the brand profile of the financial institution.
"The bank, is thus, reinventing its processes, re-engineering its operations and renewing its corporate commitment and outlook to serve its teeming customers better", the statement said.
The Managing Director/Chief Executive of the bank Abdulsalam Y. Ahmed said the new communication strategy will be unveiled soon to give the bank a vibrant personality and reposition it as the foremost secondary mortgage institution in the country as well as create awareness about its products and services.
The statement said: "The optimism is very high that once the new campaign breaks, the bank will be in a strong stead to meet its strategic objectives which include: issuing mortgage bonds based on the bank's financial strength or government guarantee or both.
"It is hoped that this will diversify the bank's resources in order to meet its mandate. Also, it will attract foreign funding and investments into the Nigerian mortgage sector through the securing of facilities from international financial and multi-lateral institutions as well as private international investments as the global financial crisis eases up."
Be the first to Write a Comment!
Copyright © 2009 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
