FEDERAL MORTGAGE BANK OF NIGERIA (REFINANCING AND LOANS) ACT

An Act authorizes the Federal Mortgage Bank of Nigeria to refinance loans from primary institutions and offer direct loans. It targets primary mortgage institutions and homebuyers seeking affordable housing. This enhances liquidity in the housing finance market.

What Is This Policy?

An Act providing specific authority for the Federal Mortgage Bank of Nigeria to refinance mortgage loans made by primary mortgage institutions and to provide direct loans, supplementing the main FMBN Act.

Who Does It Target?

Primary Mortgage Institutions (PMIs) seeking FMBN refinancing Homebuyers benefiting from FMBN-refinanced mortgages Real estate developers accessing FMBN estate development loans Federal Ministry of Works and Housing

What Does It Aim to Achieve?

Enable FMBN to act as a secondary mortgage market institution by refinancing mortgage loans from primary lenders, thereby improving liquidity in the housing finance market.

Key Features

Refinancing Powers: FMBN may purchase mortgage loans from PMIs, providing liquidity for further lending. Direct Loans: FMBN may make direct mortgage loans to eligible borrowers where PMIs are unavailable. Estate Development: FMBN may lend to developers of residential estates for subsequent sale to FMBN-eligible borrowers. NHF Integration: Refinancing is primarily funded by National Housing Fund contributions.

Current Status

Rollout Stage: Active Coverage: Nationwide housing finance market Beneficiaries: Home buyers; PMIs; housing sector Funding: NHF contributions; Federal Government capitalisation

How to Access

PMIs apply to FMBN for refinancing of eligible mortgage portfolios Direct mortgage applicants must be NHF contributors Estate developers apply to FMBN for development loans Application method: Engage FMBN at https://www.fmbn.gov.ng

Important Terms

Refinancing is conditional on mortgage loans meeting FMBN quality standards NHF contributors have priority for FMBN-funded mortgages Interest rates on FMBN refinanced mortgages are regulated by the Board

Official Resources

Website: https://www.fmbn.gov.ng Contact: Federal Mortgage Bank of Nigeria (FMBN)

Legal Framework

Enacted under the legislative powers of the National Assembly as the Federal Mortgage Bank of Nigeria (Refinancing and Loans) Act. Operates alongside the Federal Mortgage Bank of Nigeria Act (Cap F19 LFN 2004), the National Housing Fund Act, the Land Use Act 1978, and the Mortgage Institutions Act. Aligns with the National Housing Policy and the CBN mortgage finance guidelines.