The Senate’s Committee on Establishment and Public Service yesterday held a public hearing on a bill seeking the establishment of the Chartered Institute of Mortgage Bankers and Brokers of Nigeria.
The bill, sponsored by a Senator representing Ogun West in the Red Chamber, Sen. Tolulope Odebiyi aims to raise the profile and value of mortgage banking as a profession, as well as confer on the Association a hallmark of trust and quality, thus enhancing its credibility.
Speaking to Africa housing news reporters shortly after the public hearing, Senator Odebiyi said the proposed bill will help reshape the nation’s mortgage system as well as enhance Nigeria’s Gross Domestic Product (GDP) in the long run.
“The Mortgage Bankers Association of Nigeria’s bill offers me an opportunity to once again present a bill that I strongly believe will fundamentally change the mortgage sector as well as impact the socio-economic development of the country. If you look at Nigeria now, yes, we have a lot of companies offering mortgages. However, for me, I can say that we are not really giving out mortgages because when you give out mortgages and you are charging 18%, 22% or 25% interest, that’s a death warrant. That’s not even mortgages.
“First is to organize the mortgage bankers and brokers association of Nigeria into a chartered professional body so that they can make sure they are well trained and informed of the process of mortgage lending.
“What we’ve done today is therefore, to pass a bill recognizing them or proposing that they become a chartered mortgage bankers association of Nigeria into a professional body that empowers them to do various things like teach, train, give licenses, among many other things which will be recognized by law which is what we’ve experienced today.
“I’m hoping that the next step will now be to have a roundtable discussion with them at a later date to now brainstorm on the mortgage challenges in Nigeria. The number one issue that’s so serious at this time is the issue of long-term funding which is not readily available in the country”, he said.
Speaking on the possibility of the bill being passed into law, Sen. Odebiyi expressed optimism for the speedy passage of the bill, saying “It’s the quality of a bill that matters and the impact it’s going to have. People here are well seasoned and informed. So, once a bill comes onboard and you make a case for the importance of the bill on the economic development of the country as regards the needs and the gaps, such a bill will definitely be passed into law. There are about 22 million housing deficits in Nigeria and that only is enough to spur the bill to fruition.”
Supporting the bill, the MBAN President, Ebilate Mac-Yoroki, while giving justifications for the bill said that a chartered status on MBAN will not only reinvigorate mortgage system in the country but will also help enhance the standards of knowledge and skill of persons seeking to become registered members of the mortgage banking and brokerage practice in Nigeria.
“The passage of this bill will help secure the establishment and maintenance of a register of fellows, associates, graduates, and student members of the Institute and the publication from time to time, of lists of those persons; regulating and controlling the practice of the profession in all its ramifications; maintaining of discipline within the profession; ensuring the establishment, maintenance and observance of ethical standards and professionalism among practitioners of the mortgage banking and brokerage profession in Nigeria; and Conducting professional examinations leading to the awards of certificates as may be prescribed by the Institute; Facilitate the Association’s ability to collaborate with other Professional Bodies such as the CIBN, ICAN, etc within and beyond the Financial Services Sector”, he added.
Others who spoke in support of the bill were representatives of the Financial System Strategy (FSS), Real Estate Developers Association of Nigeria (REDAN), Development Bank of Nigeria (DBN), and a host of other organizations.
