Mortgage Banking Reforms will help evolve focus on core business - Akinlusi
April 27, 2012/Temple ASAJU/Proshare
In a country with passive deficit of 16 million gaps in housing, there are huge opportunities in mortgage banking for a state like Nigeria.
Following the just concluded Annual General Meeting of Intercontinental Homes, its Chief Executive, Mr. Adeniyi Akinlusi, disclosed that with the new guidelines for mortgage banking in Nigeria and the new requirement on capital base as released by the regulatory authority, the Central Bank of Nigeria (CBN), which would be implemented from 2013, mortgage banking in Nigeria poses new operability essence through a transition year for Nigerians.
In the words of Akinlusi, “In the coming year, the mortgage banks will transit from the activities of Real estate business to full mortgage banking operations. According to the new guidelines, there are restrictions on retail banking and consumer banking for mortgage banks engaging in such.”
“The new regulations will enable mortgage banks in the country to pay more attention to their core area while this will aid Nigerians in realising the dream of home ownership.” Akinlusi stated.
With a whole of divestment from stocks to the real estate sector, the 16 million deficit gap in housing will pre-empt any experience of bubble asset burst as witnessed in equities. Thus, there are certainties of revenue generation through mortgaging and real estate business, specifically in Nigeria.
In bracing up for the anticipated development in the mortgage sector, Akinlusi says “Intercontinental home will not be different, as the mortgage bank is re-tooling and re-kiting to be able to play an effective role in the field.” He adds, “The recapitalisation exercise of N4.5billion Naira for International Franchise and N2.5billion Naira for the state-based operations has placed the bank on track to enable management meet up with the new requirement.”