CBN Releases List of Approved 43 Mortgage Banks to Help Nigerians Become Landlords
- The Central Bank of Nigeria's list of 43 banks that have been approved to offer mortgage loans to Nigerians has been revealed
- The list includes two banks owned by the Nigerian Police Force (NPF) and First Bank of Nigeria (FBN).
- The banks approved are there to help in increasing Nigerians' access to mortgage finance to become landlords
The Nigerian Deposit Insurance Corporation (NDIC) has released the Central Bank of Nigeria (CBN)'s list of 43 mortgage banks approved to assist Nigerians in becoming landlords.
The mortgage bank's primary business is expected to facilitate the purchase, renovation, and construction of residential and commercial properties nationwide.
CBN's instructions for mortgage banks
The CBN has guidelines that clearly show permissible and non-permissible activities for mortgage banks.
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Based on the apex bank's guidelines, primary mortgage banking business involves:
- Granting loans directly to customers for acquiring, renovating, or building real estate properties.
- Approved institutions have the authority to engage in various activities related to mortgage finance, including:
- Real estate construction finance within permissible limits.
Permissible activities for primary mortgage banks include:
- Accepting savings, demand and time/term deposits.
- Drawing from mortgage funds (e.g., National Housing Fund) for on-lending purposes.
- Providing financial advisory services to mortgage customers.
- Granting mortgage and housing-related consumer loans.
- Enhancements for residential mortgages, such as furniture, home appliances, and generators (capped at a maximum of 10% of total loans).
Approved institutions are permitted to engage in the following activities, subject to approval from the CBN:
- Financing rent-to-own properties.
- Providing home improvement loans.
- Incremental housing finance.
- Other activities approved by the CBN from time to time.
- Primary mortgage banks are explicitly not allowed to:
- Grant consumer or commercial loans (except for specified housing-related consumer loans).
- Provide foreign currency-denominated mortgage loans to customers.
- Engage in leasing, estate agency or facilities/project management, and real estate development.
The CBN further divided mortgage banks into two groups, State Primary Mortgage Banks (Regional PMBs) and National Primary Mortgage Banks (National PMBs).
States mortgage banks can operate within a single state or the Federal Capital Territory (FCT).
While national PMBs are permitted to conduct business operations in more than one state, including the FCT.
Here is a complete list of CBN-approved mortgaged banks in Nigeria with customers deposits insured by NDIC:
- Abbey Mortgage Bank Plc
- Platinum Mortgage Bank
- Mayfresh Mortgage Bank
- Jubilee-Life Mortgage Bank
- Aso Savings & Loans Plc
- Trust Bond Mortgage Bank
- SunTrust Mortgage Bank
- Infinity Trust Mortgage Bank Plc
- Haggai Mortgage Bank
- Imperial Mortgage Bank
- Nigeria Police Mortgage Bank
- FOKAS Savings & Loans
- Centage Savings & Loans
- Resort Savings & Loans
- Skyfield Savings and Loans
- FHA Homes Limited
- FBN Mortgages Ltd
- STB Building Society
- Omoluabi (Living Spring) Savings & Loans
- First Generation Homes
- Global Trust Savings & Loans
- AG Homes Savings & Loans
- Kebbi State Homes S & L
- Mutual Alliance Savings & Loans
- Lagos Building and Invest. Co.
- Refuge Home S & L
- Safe Trust Savings & Loans
- Delta Mortgage Finance
- New Prudential Building Society
- Home-Base Mortgage
- Accord Savings & Loans
- Adamawa Savings & Loans
- Trans-Atlantic Mortgages Limited
- Akwa Savings & Loans
- Gateway Savings & Loans
- United/Spring Mortgage
- Kogi State Savings & Loans
- Jigawa Savings & Loans
- City-Code Savings & Loans
- Taraba State Savings & Loans
- MGSL Mortgage Bank
- AHCOL Savings & Loans
- Coop Savings and Loans
CBN removes company responsible for new naira notes from cheque printing list
In another development, the CBN removed the NSPMC from the list of companies approved to print cheques.
NSPMC is responsible for printing Nigeria's currency, including the recently introduced N1000, N500, and N200 notes.
The updated list saw the number of authorised cheque printers significantly decrease from 14 in 2010 to only four.