In a renewed effort to build public confidence as well as engender soundness and stability in the mortgage banking sub-sector of the Nigerian banking industry, the Central Bank of Nigeria (CBN) has established a Sub-committee on Ethics and Professionalism for Mortgage Bankers.
The Sub-committee will ensure the settlement of disputes between mortgage banks and their customers on one hand and among the mortgage banks on the other.The sub-committee, which is a self-regulatory body is the Alternative Dispute Resolution (ADR) Platform/Financial Ombudsman for the mortgage banking sub-sector, has The Chartered Institute of Bankers of Nigeria (CIBN) as the Secretariat.
The membership of the Sub-committee includes representatives of the CBN, Nigeria Deposit Insurance Corporation, CIBN, Haggai Mortgage Bank Ltd., Abbey Mortgage Bank Plc, Mortgage Bankers Association of Nigeria (MBAN), and Imperial Homes Mortgage Bank Ltd.
In a statement by the Registrar/CEO of CIBN, 'Seye Awojobi, lauded the establishment of the Sub-committee, describing the development as "a noble initiative".
Awojobi, who also doubles as the Secretary of the Sub-committee, called on mortgage bank customers and the banks to take opportunity of the platform, which is free, to resolve their disputes with the banks and among themselves respectively.
He enjoined mortgage banks to set up a Complaints Desk to handle customers' complaints, as only the cases the banks are not able to resolve would be brought before the Sub-committee for adjudication and settlement.
Also, "the Sub-committee will not handle cases which had already been reported to and handled by the Regulatory Authorities or cases before the Court. Furthermore, it will not entertain cases that are more than six years old in line with Statute of Limitation Act," the CIBN boss explained.