Q. What are the benefits of the NHF scheme?
Ans:
1.
Housing loan of up to 90% of the cost of the
house
2.
Interest on loans remains fixed throughout
the life of the mortgage at 6% p.a.
3.
Long period of repayment of up to 30 years.
4.
Contributions can serve as additional old
age security.
4. Up to N15 million can be borrowed.
5. Refunds with 2% interest on retirement.
6. Loan repayment is about the same as a
typical monthly rent.
7. Every contributor has:
◦ A lifetime registration number;
◦ A passbook for personal recording of contributions;
and
◦ An account statement
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Ans:
It is compulsory.
Registration onto the scheme is by
organizations and self employed
Employers are not given the choice to make
the scheme voluntary for some staff
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Ans:
Yes, you still need to contribute to the
scheme because just like a cooperative
scheme it is not all members who may want
to take a loan.
Secondly, the person who is not taking the
loan today may change his mind tomorrow.
The compulsory savings is an additional
security to a retiring staff.
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Ans:
The act establishing the scheme provides that
the contributing organization shall appoint a
desk officer whose duty it shall be to send
schedule of deductions to us and also update the
passbooks on monthly basis.
What we have today is that organizations load
their desk officers with other assignments and
this function is not done.
On our part, we are already migrating to ecollection platform to totally remove this
problem.
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Ans:
A contributor to the scheme has a life time
account number.
On transfer we merge whatever he has
contributed in the other organizations with
his contribution now under that single
account.
People who have this problem should come
to our office.
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Ans:
No withdrawal is allowed from the savings
until retirement and the attainment of 60
years old or after 35 years in service.
A refund is paid to a retired officer upon the
attainment of 60 years old or 35 years in
service.
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Ans:
The scheme is doing well in this state.
The fund was used to finance the following
estates:
1. Mandate III Estate, Yidi Road, Ilorin.
2. Royal Valley Phases I & II. Kulende, Ilorin
3. Harmony Estate, Sobi Road, Ilorin
4. Kam-Abioye Estate, Eiyenkorin, Ilorin
Processed Estate Development Loan at the verge
of disbursement
1. Legacy Estate, Tanke Ilorin
2. Tranquility Estate, Oke-Ose, adjacent UITH,
Ilorin.
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Estate Development Loans still under MOU
1. NMA/ SAFEFORTE NIG LTD for Doctors
Mega City
2. SSA/ QH Multi-Concepts Ltd for SSA estate
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Ans:
No. The scheme is to promote the acquisition
of houses by the contributors.
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Ans:
The fund is pooled from monthly
contributions
The monthly repayments from loans also
increase the fund
Government housing intervention funds also
increase the scheme.
The scheme is a revolving fund.
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Ans:
No relationship. That programme was a
political program that went with the NPN
government of the President Shehu Shagari
regime.
As the scheme was anchored by the Federal
Housing Authority (FHA), all questions can be
directed to that organization.
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Ans:
The old FMBN which was mobilizing savings from
the public, was deconsolidated and Federal
Mortgage Finance Ltd (FMFL) took over the
savings portfolio.
At the moment the FMFL is under liquidation as
FGN is divesting from retail mortgage operations.
Anybody who has savings with this organization
can reach them at their office at Abuja.
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Ans:
Unlike Insurance Companies, we do not
operate under risk.
We manage a revolving fund and the loans we
give are collateralized by the houses upon
which we create mortgages.
We are interested in social profitability and
not commercial profitability.
Our activities are therefore subsidized by the
Federal Government of Nigeria.
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Ans:
FMBN is the Manager of the fund and we give
the fund to Primary Mortgage Banks who
operate at the retail level.
The act that established the fund recognizes
that the retailers would have outlets
nationwide to package retail loans and
facilitate repayments of the loans granted.
This arrangement accordingly ensures check
and balances.
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Ans:
On the presentation of letter of administration
from a court or a notary person, the full
refund is processed and paid to the next -ofkin of the deceased.
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Ans:
The timing depends on the seriousness to
provide the documents upon which a
mortgage is to be created.
The timing depends on the applicant, the PMI
and very little on us.
This is because all our loan requirements are
disclosed even before a decision is taken to
take a loan.
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Ans:
We at Federal Mortgage Bank of Nigeria
Complex, Adjacent Global Soaps &
Industries, Asa-Dam Road, Ilorin.
Our website is: www.fmbnigeria.org