Expert Wants Review of Mortgage Banks’ Operations

Mr Kingsley Theophilus, the Chairman of African Shelter Support and Empowerment Initiative, has called for a review of the operations of mortgage banks to reposition them for greater efficiency.

Theophilus told the News Agency of Nigeria (NAN) on Monday in Lagos that the review would enable the banks to render some other mortgage- related services to be more relevant.

He said that the review would also enhance the banks’ abilities to carry out their duties, live up to expectations and restore peoples’ confidence.

The chairman told NAN that mortgage banks’ operations in the country were different from what obtained in some other countries.

“In Nigeria, mortgage banks only create mortgage loans, while in other countries such banks provide insurance services and estate development services, among others.

“Even in Ghana, mortgage banks buy and develop estates for clients and also create mortgage loans in dollar denomination,’’ Theophilus said.

He said that there was the need for mortgage banks in Nigeria to be more diversified to be able to compete with mortgage banks in other countries.

Theophilus said that additional services by mortgage banks would create more business opportunities for the banks and increase their income.

“It is important that there are adequate regulations and supervision from the Central Bank of Nigeria and the Federal Mortgage Bank of Nigeria (FMBN) to ensure there are no bottlenecks.

“The goal is effective operations that link potential home owners to the funding that best suits their needs,” he said.