The Central Bank of Nigeria has set the minimum capital requirement for the operation of Mortgage Guarantee Companies at 6bn (six billion Naira.)
The Apex Bank says licensing of Mortgage Guarantee Companies would deepen the mortgage banking sub-sector, through increased market access to mortgage finance and sharing of credit risk.
According to the Central Bank, the proposed regulation was aimed at ensuring that Mortgage Guarantee Companies are licensed to operate on internationally acceptable standards.
The companies are allowed to issue bonds and notes to fund its operations among other activities.
