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FMBN commences loan recovery exercise

By The Citizen

The Federal Mortgage Bank of Nigeria (FMBN) is to recover loans from its clients in order to meet its obligations to its shareholders.

The Chairman of the bank's Board of Directors, Chief Bisi Ogunjobi, in Abuja on Friday shortly after a management retreat said that Primary Mortgage institutions would be included in the loan recovery exercise.

Ogunjobi, however declined to mention the amount being owed the bank, saying the figure was not important.

He explained that the bank would review the estate development loan window to remove observed lacuna, adding that the National Housing Scheme would be reviewed to ensure better collection of contributions from the PMIs noting that the FMBN was reforming its operations to enforce discipline and transparency.

'The management has resolved to strengthen and monitor our offices at close range and we have also adopted drastic and pro-active loan recovery measures from clients and PMIs owing FMBN; it is important that those owing us should honour their obligations to us,' Ogunjobi stated.

The board chairman said that the management decided at the retreat to computerise the e-collection platform, adding that e-collection cards would soon be issued to contributors to be used on ATM machines to enable them to know the level of their contributions and ensure transparency.

He stated that the bank had held a dialogue with the Real Estate Developers Association of Nigeria, Mortgage Bankers Association of Nigeria and other critical stakeholders to make sure houses under the NHS reached contributors.

Ogunjobi explained that contributors who did not take loans can now get refund without stress on retiring from service, noting that the number of those getting refund had increased by ten fold.

The chairman noted the challenges facing PMIs including the issue of property titles, which he said had been hindering mortgage business.

He said, 'We discussed the challenges facing PMIs particularly the issue of title to property because without a title, you can't get mortgage; the FMBN will use its own internal measure to assist clients get titles.'