OU OUTLINE TLINE Key$Stats$on$Nigeria$ - PDF document

G ROWING THE MORTGAGE MARKET TO ENABLE BROADER ACCESS TO HOME OWNERSHIP IN N IGERIA C HII A KPORJI , P H . D D IRECTOR , P OLICY , S TRATEGY & PARTNERSHIPS OU OUTLINE TLINE • Key$Stats$on$Nigeria$ • Overview$of$the$Mortgage$Market$in$Nigeria$ • Enter$NMRC$ • Business$Overview$ • Market$Development$Ini@a@ves$ • Conclusion$ • Q$&$A$ 2$

NIGERIA: NIGERIA:-KEY-S -KEY-STATIS TISTICAL-D TICAL-DATA A Exchange)Rate:)US$)1) Nigerian)Naira)197)(22 nd )Oct.)2015)) Major$Ci@es$ Lagos,$Abuja,$Port$Harcourt,$Kano$ Popula@on$ 173,615,$345$m$ Popula@on$Growth$Rate$ 2.79%$ Urban$Popula@on$(%$of$Total)$ 46.09$ Urbanisa@on$Growth$Rate$ 4.68%$ GDP$Growth$Rate$ 5.39%$ GDP$per$capita$(US$)$ 3.005.51$ Mortgage$as$%$of$GDP$ 0.58%$ Prime$and$Minimum$Lending$Interest$Rate$ 16.90$ No.$of$Mortgage$Ins@tu@ons$ 40$ No.$of$Commercial$Banks$ 21$ Ease$of$Doing$Business$(WBG$_$2014,$2015)$ 175$(2014);$170$(2015)$ 3$ 4$

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ENTER-THE-NIGERIA-MORTGAGE-REFI FINANCE-COMPANY 7$ NM NMRC-HIGHLIGHT C-HIGHLIGHTS 8$

9$ - TIVES- - BU BUSINE INESS-OBJ -OBJECTIVE • To$encourage$financial$ins@tu@ons$to$increase$their$mortgage$lending$by$ providing$them$with$long$term$funding;$ $$ •$To$increase$the$maturity$structure$of$mortgage$loans$and$assist$to$reduce$ mortgage$rates;$ $ •$To$increase$the$efficiency$of$mortgage$lending$by$taking$a$lead$role$in$proposing$ changes$to$the$enabling$environment$for$mortgage$lending$as$well$as$by$ standardising$mortgage$lending$prac@ces$of$financial$ins@tu@ons;$and$ $$ •$To$introduce$a$new$class$of$high$quality$long_term$assets$to$the$pension$funds$ and$other$investors$ 10$

SIGNIFICANT)MILESTONES) • Drawdown$On$Ida$Subordinated$Loan$ • Model$Mortgage$And$Foreclosure$Law$ • FGN$Guarantee$ • Review$Of$Legacy$Loans$Porfolio$ $ • First$Bond$Issue$ • First$Set$Of$Refinancing$Of$Mortgages$ $ • FMDQ$Lis@ng$ 11$ MA MARKET ET/BUSIN USINESS-DEV SS-DEVEL ELOPMEN PMENT-IN -INIT ITIA IATIV IVES-; S-;-1 -1 UNIFORM UNDERWRITING STANDARDS • NMRC$has$spearheaded$the$development$of$industry$lending$standards$to$promote$efficiency$and$ mi@gate$the$legal$and$opera@onal$risks$inherent$in$mortgage$lending$by$ensuring$quality$ collateral,$adequate$property$@tle,$proper$registra@on,$enforcement$of$legal$mortgages,$and$ maintenance$of$efficient$collec@on$processes.$ • NMRC’s$Uniform$Underwri@ng$Standards$for$Eligible$Mortgage$Loans$was$published$in$January$ 2015.$$ • All$mortgages$to$be$refinanced$by$NMRC$must$conform$to$the$Uniform$Underwri@ng$Standards$as$ published$or$amended$from$@me$to$@me.$$ $ • The$Uniform$Underwri@ng$Standards$act$as$industry$standards$for$gran@ng$home$mortgage$loans$ to$borrowers$that$will$qualify$for$NMRC$refinancing$facility,$thereby$promo@ng$efficiency$and$ mi@ga@ng$the$mortgage$financing$risks$in$the$markets$well$as$lead$to$more$affordable$home$ ownership$in$Nigeria.$ 12$

MA MARKET ET-DEV -DEVEL ELOPMEN PMENT/BUSIN USINESS-O SS-OBJE JECTIV IVE-; E-;-2 -2 • Reach$out$state$governments$as$key$partners$in$the$set$up$and$opera@onaliza@on$of$the$NMRC,$ as$well$as$cri@cal$to$the$growth$of$the$mortgage$and$housing$sector$in$Nigeria.$ $ • 21$State$Governors$have$commiked$to$suppor@ng$the$NMRC$ini@a@ve$and$to$collabora@ng$to$ create$the$enabling$environment$for$mortgage$origina@on$to$be$refinanced$by$NMRC$in$key$areas$ under$their$jurisdic@on.$$ ! Property$Registra@on$ ! Enforcement$of$Mortgage$Property$ ! Access$to$Serviced$Land$ • A$framework$dral$Memorandum$of$Understanding$is$usually$agreed$to$by$both$par@es$to$govern$ the$partnership$between$the$state$and$the$NMRC.$$ $ • MoU$with$Kogi$State$formalized$$ 13$ 14$

MARKET)DEVELOPMENT/BUSINESS)OBJECTIVE)M)3) • A$cri@cal$developmental$role$set$for$NMRC$on$its$establishment$is$the$promo@on$of$legisla@ve$ reform$by$proposing$a$Model$Mortgage$and$Foreclosure$Law$for$adapta@on$by$frontline$states$to$ fast$track$the$process$of$crea@ng$legal$mortgages,$ensuring$@mely$resolu@on$of$disputes$and$ crea@ng$efficient$foreclosure$processes.$$$ $$ " The$Model$Mortgage$&$Foreclosure$Law$calls$for$the$crea@on$a$state$Mortgage$Board$as$a$one_ stop_shop$to$facilitate$accessible$and$affordable$mortgages$for$the$benefit$of$residents$of$the$ State.$$ " Other$func@ons$to$be$undertaken$by$the$Board$under$the$supervision$of$the$Commissioner$for$ Housing$in$the$first$Phase$of$roll$out$are$as$follows:$$ — Advising)the)state)on)the)funding,)administraVon)and)structure)of)the)State)mortgage)finance) programme;)) — ImplemenVng)and)honouring)on)behalf)of)the)State)all)obligaVons)in)any)agreement)made)between)the) State)and)other)parVes)with)regards)to)any)mortgage)scheme)for)the)provision)of)funds)for)land) ownership)or)development)of)real)estate)in)the)State;)) — Encouraging,)promoVng)and)coordinaVng)all)forms)of)research)concerned)with)the)mortgage)lending) industry)as)it)relates)to)economic)wellMbeing)of)the)State)and)its)residents,)) — The)stamping)and)registraVon)system)relaVng)to)mortgages)in)the)State,)the)mode)of)applicaVon)for) Governor’s)consent)or)the)consent)of)the)appropriate)Local)Government)Area)relaVng)to)mortgage) transacVons,)and)generally)to)disseminate)same)to)the)State)government)and)the)public.)) 15$ MARKET)DEVELOPMENT/BUSINESS)OBJECTIVE)M)4) MMFL – A PLATFORM FOR POLICY DIRECTION ON HOUSING IN THE STATE • Provide$a$plaform$for$the$priori@za@on$of$housing$in$the$state.$The$crea@on$of$a$separate$ mortgage$registry$dis@nct$from$the$land$registry$(or$a$specialized$unit$within$the$current$land$ registry)$will$assure$ci@zens$of$the$government’s$commitment$to$providing$housing$in$the$state.$ • The$MMFL$will$create$a$framework$for$the$state$government$to$set$housing$policy$agenda$going$ forward$as$the$mortgage$board$to$be$created$under$the$Law$will$con@nually$make$progressive$ policies$that$will$be$pro$affordable$housing.$ INVESTOR PROTECTION • The$bill$will$foster$proprietary$rights$of$poten@al$investors$in$the$state$by$providing$security$of$ assets$and$land$@tles$ • This$is$possible$because$of$the$op@on$provided$to$investors$under$the$MMFL$for$enforcing$land$ related$obliga@ons$without$the$current$uncertainty$around$foreclosure$in$the$extant$law$on$ mortgages$(i.e.$the$Conveyancing$Act)$ REVENUE FOR THE STATE • The$MMFL$provides$for$a$global$fee$for$perfec@on$of$land$and$mortgage$transac@ons.$This$global$ rate$will$be$a$reduced$rate$rela@ve$to$the$current$cost$of$perfec@on$in$most$states$ 16$

MO MOVIN ING-F -FORWARD D • Second$Equity$Raise$ • No$of$Mortgages$to$be$Refinanced$ • Mortgage$Pipeline$ • New$Products$Development$ • MoUs$with$states$signed$and$MMFLs$Passed$ 17$