FMBN to offer moratorium for housing loans

AMID the impact of coronavirus in mortgage and housing sector, the Federal Mortgage Bank of Nigeria (FMBN) is considering a 180 and 360 days moratorium to existing loan beneficiaries under its projects.

In addition, it has planned to engage beneficiaries to discuss the difficulties that may arise with primary mortgage banks, saying, it would continue to encourage contributors to National Housing Fund to continue with loan repayments.

FMBN Managing Director, Ahmed Dangiwa, an architect, who stated this at a parley with journalists in Abuja, explained that  COVID-19 experience has made them to consider all these and to embark on full automation and digitalisation of the operations nationwide.

He also added that credit facility will most likely shrink and the bank would be more stringent with the private sector as repayment may likely increase due to uncertainties over household incomes, as ”we want to sustain activities to help stabilise the sector.”

His words: “Economists are predicting economic slowdown for the second and third quarters of 2020, coupled with the drop in oil prices, the pandemic would have impact on government’s revenue and during the period, the Nigerian economy will be negative.

Explaining further, Dangiwa said that prices of existing stock of houses will likely drop as new ones come on stream, and real estate developers would equally, come under intense pressure to sell off, adding, the lower prices are envisaged for niche buyers who have steady income.

Similarly, the FMBN boss argued that the bank lending operations would adversely affect economic issues arising from the pandemic, hoping that as a financial institution, we will be at the forefront of President’s economy recovery, and employment generation.

“Housing development is one of the most viable activities to grow economise. Therefore, we would continue to disburse loans for mortgage to national housing fund applicants, and for construction of housing estate through cooperative societies for affordable housing delivery,” he added.