In accordance with its mandate of bring liquidity into the mortgage market, the Nigeria Mortgage Refinance Company (NMRC) has concluded plans to refinance N10 billion mortgages in the market this month. Prof. Charles Inyangete, CEO, NMRC, disclosed this at a Public Awareness and Capacity Building Workshop organised by the company in Lagos. In attendance of this workshop included representatives of International Development Finance agencies, primary mortgage banks (PMBs), local and international capital market operators, industry regulators, and policy experts.
He state that one of the critical objective of the workshop was to prepare, educate, and position mortgage operators and stakeholders for the constructive boom in mortgage refinances, and investment vista from the much anticipated successful issuance of the NMRC Bond in the Capital Market. Inyangete remarked that the first refinancing of existing mortgages in the market, also known as legacy loans, by NMRC involves about 600 loans that are already in the market, adding that 8 mortgage firms are participating in the transaction. “We are starting this month with the first refinancing of existing mortgages in the market, which we call the legacy loans. That is N10 billion transaction and we are about to conclude that. And it involves close to 600 loans that are already in the market, and that’s the first of the kick-off of our refinancing. There are 8 mortgage firms that are part of this first transaction, but we have 20 primary mortgage lenders as part of the NMRC market as we speak, and there are many more waiting to join the market,” he stated.
The boss of NMRC stated that the company has made significant impact in the last one year. “NMRC has brought in uniform underwriting standards into the market. And so for the first time in Nigeria, we now have underwriting standards that really determine how loans are originated and evaluated for the purpose of being given a facility. So that levels the playing field for everybody,” he declared.
Inyangete noted that NMRC is a private company with a public mission with a mandate to facilitate the availability of affordable housing, through the provision of long term mortgage refinance to primary mortgage lenders. “The successful delivery by NMRC on its mandate will unlock quantum opportunities in deepening and expanding Nigeria’s mortgage industry, the capital market, and pivoting Nigeria’s GDP to new heights,” he stated.
NMRC’s mode of operation (refinancing cycle) involves an initial step by a borrower to take out a mortgage loan from a participating mortgage lender based on the uniform underwriting criteria set by NMRC; in return the borrower will provide regular repayments of the loan principal plus interest. The borrower will also provide collateral in the form of a mortgage over the property to be purchased.
Secondly, the participating mortgage lenders will refinance the loans with NMRC, which will refinance the mortgage loans of banks with recourse to the financial institutions. The participating mortgage lender will in turn, provide security over its mortgage portfolio in favour of NMRC. The third step is for NMRC to rise its own funding by accessing the capital markets and issuing bonds.


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