Nigeria Mortgage Refinance Company

The Nigeria Mortgage Refinance Company Plc (NMRC) was incorporated on 24 June 2013 as a public limited liability company registered with the Securities & Exchange Commission (SEC) and regulated by the Central Bank of Nigeria (CBN) as a non-deposit taking financial institution with the core activity of refinancing mortgages.

Nigeria Mortgage Refinance Company
TypePublic limited company
IndustryFinance
Founded24 June 2013
Headquarters
Abuja Office
Plot 1386A Tigris Crescent, Maitama, Abuja, Nigeria

Lagos Office
17 Sanusi Fafunwa, Victoria Island, Lagos, Nigeria
,
Nigeria
Website

NMRC was set up to bridge the funding cost of residential mortgages and promote the availability as well as the affordability of good housing to Nigerians by providing increased liquidity in the mortgage market through the mortgage and commercial banks.[1]

History

Nigeria Mortgage Refinance Company (NMRC) was incorporated as a public limited liability company licensed to provide mortgage-lending institutions with access to long-term finance at an affordable interest rate, thereby enabling mortgages to be issued by these institutions to Nigerians, at longer tenors and affordable rates.

NMRC obtained an Approval-in-principle from the CBN on 20 June 2013. The company became incorporated on 24 June 2013 as Nigeria Mortgage Refinance Company Plc and were issued their licence for operations on February 18, 2015.[2]

Leadership

The NMRC’s board of directors are responsible for the formulation of policies and strategies of the Company.

Name of Board Member Position at the NMRC Other Commitment
MR. CHARLES ADEYEMI CANDIDE-JOHNSON CHAIRMAN Senior Partner at Strachan Partners
MR KEHINDE OGUNDIMU CHIEF EXECUTIVE OFFICER
MR. UCHE ORJI NON-EXECUTIVE DIRECTOR Managing Director / CEO Nigeria Sovereign Investment Authority
MR. FEMI JOHNSON NON-EXECUTIVE DIRECTOR Managing Director/CEO Home Base Mortgage Bank Limited
MR. RAZACK ADEYEMI ADEOLA NON-EXECUTIVE DIRECTOR Group Managing Director / CEO Sterling Bank Plc Kakawa Discount House Ltd
MR. JOSEPH MAGAJI AZI NON-EXECUTIVE DIRECTOR Ministry of Finance Incorporated.
MR. HERBERT WIGWE NON-EXECUTIVE DIRECTOR Group Managing Director - Access Bank Plc.
MRS. FATIMA WALI-ABDURRAHMAN NON-EXECUTIVE DIRECTOR Professional Architect
MR. ADENIYI AKINLUSI NON-EXECUTIVE DIRECTOR Managing Director/CEO TrustBond Mortgage Bank Plc President of the Mortgage Banking Association of Nigeria (MBAN)

[3]

Awards

Nigeria Mortgage Refinance Company (NMRC) received the award for ‘Mortgage Bank of the Year’ category at the eighth edition of the African Banker Awards held in Kigali, Rwanda.[4]

Branches and Subsidiaries

The Nigeria Mortgage Refinance Company Plc (NMRC) has 18 pilot States in Nigeria where the governors have already committed to supporting the NMRC initiative by creating an enabling environment for mortgage orientation to be refinanced by the company include Abia, Anambra, Bauchi, Bayelsa, Delta, Edo, Ekiti, Enugu, Gombe, Kaduna, Kano, Kwara, Lagos, Nasarawa, Ogun, Ondo and the FCT.[5]

The Nigeria Mortgage Refinance Company Plc (NMRC) has about 20 member mortgage lending banks;

  1. Sterling Bank Plc
  2. Access Bank Plc
  3. Heritage Bank Plc
  4. Stanbic IBTC Bank Plc
  5. Infinity Trust Mortgage Bank Plc.
  6. Homebase Mortgage Limited
  7. FHA Homes Savings & Loans Limited
  8. Trust Bond Mortgage Bank
  9. Imperial Homes Mortgage Bank
  10. Abbey Mortgage Bank Plc
  11. Resort Savings & Loans Limited
  12. Platinum Mortgage Bank Limited
  13. Jubilee Life Savings & Loans Limited
  14. Haggai Savings & Loans Limited
  15. Refuge Home Savings & Loans Limited
  16. New Prudential Building Society
  17. Sun Trust Bank
  18. Nigeria Police Mortgage Bank Limited
  19. Mayfresh Savings & Loans Limited

[6]

Mode Of Operations

Refinancing Cycle

Initial step is for 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.

Second step is for the participating mortgage lenders to refinance the loans with NMRC. NMRC 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 raise its own funding by accessing the capital markets and issuing bonds. It will issue corporate bonds, which do not involve any pass through of the credit risk attached to the mortgages. NMRC acts as a simple intermediary between mortgage lenders and the capital markets. By using its size and credit worthiness, NMRC will be able to raise funds at a cheaper rate. This is attributable to the strong shareholders, strong capital base, excellent quality of assets in its books and the fact that the CBN and the SEC regulate NMRC. [7]

Events
Date Event Description
5th-7 May 2015 NMRC Public Awareness and Capacity Building Workshop NMRC Public Awareness and Capacity Building Workshop was an avenue for awareness and capacity building. It was a success and made considerable impact in the fields of mortgage operators and stakeholders.[8]
14 January 2015 NMRC Holds Workshop On ICT Strategy For Mortgage Lending Banks Nigeria Mortgage Refinance Company (NMRC) held a one-day ICT workshop for its member mortgage lending banks.

The refinance company proposed the implementation of an ICT (Information Communication Technology) framework that will link NMRC’s system to the participating mortgage lending banks’ system to facilitate transaction velocity, reporting and monitoring of conforming mortgage loans.[9]

See also

Central Bank of Nigeria

References
  1. http://www.cenbank.org/out/2014/ccd/overview%20of%20the%20nigeria%20mortgage%20refinance%20company.pdf
  2. http://www.nmrc.com.ng/about-us/
  3. http://www.nmrc.com.ng/corporate-governance/#board-of-directors
  4. http://www.nmrc.com.ng/news-posts/nmrc-wins-african-banker-awards-2014-for-mortgage-bank-of-the-year/
  5. http://www.investadvocate.com.ng/index.php/money-market/6655-nigeria-mortgage-refinance-company-what-you-need-to-know
  6. http://www.nmrc.com.ng/member-mortgage-lending-banks/
  7. http://www.nmrc.com.ng/mode-of-operation/
  8. http://www.nmrc.com.ng/news-posts/public-awareness-capacity-building-workshop/
  9. http://www.nmrc.com.ng/events/list/?action=tribe_list&tribe_paged=1&tribe_event_display=past
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