Federal MortgageGerman federal mortgage
Its aim is to mobilize both national and foreign investment trusts in residential construction. The aim is to connect the equity markets with the residential real estate business and to establish and operate a sustainable mortgage aftermarket. They collect and manage the National Homes Fund in accordance with the NHF Act.
Founded in 1956, the Federal Mortgage Bank of Nigeria (FMBN) was initially known as the Nigerian Building Society (NBS), a commonwealth development corporation and Nigerian government cooperative. 1973 The Federal Government took over 100% of the shares in NBS under the Indigenization Act and changed its name to the Federal Mortgage Bank of Nigeria.
It acts as an instrument to increase the mobilization of long-term resources, the credit supply and the extension of mortgage credit for all sectors of the Nigeria people. As part of the 2002/2006 reforms of the residential property market on the basis of the National Policy for Living and Urban Development, the FMBN was reorganised into a government-funded company.
Therefore, it attaches more importance to mortgage and equity markets secondaries. The Bank is playing a key part in the development of a sound mortgage financing system for Nigeria. To fulfil its remit, the FMBN has moved its operative priority from a pure focusing on subsidised residential construction within the framework of the National Building Fund to an extension of its activities to cover the promotion of residential construction, mortgage re-financing, the purchase and storage of mortgage loans and mortgage-backed securitisations.
As part of this engagement, it will finance mortgage lending by prime mortgage banks under the National House Fund Scheme and lend to property developer for property developments. Nigerians are granted a loan by the National Housing Fund Programme for the construction, purchase or renovation of homes. Specifically, support will be given to programs that would improve home finance for low and middle people.
It also supports the non-salaried non-formal economy. FMBN has a number of on-going residential construction ventures throughout the state. Nigerians are the main beneficiaries of the Bank's main mission to support the supply of accessible and up-to-date homes to Nigerians.