MORTGAGE ARRANGEMENT IN DEPRESSED ECONOMY (A CASE STUDY OF FEDERAL MORTGAGE BANK OF NIGERIA). A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
This research project is a very crucial study of Mortgage Bank of Nigeria.The study was motivated by the necessity to identify the economic depression and mortgage management in Nigeria. This form of banking system has been in existence since the banking industries is concern based on given loan and advances.
To sources research problem secondary data were collected. The research instruments used in collecting the data were through textbook libraries professional and trade organizations and internet services.
Data analysis and interpretation gave the following findings:
1. Most of the respondents requires interest rate structure.
2. Most of the respondents companied about rate of payment
3. Loan disbursement/ approval
4. It was also discovered loan rescheduling/foreclosure.
Based on the findings we recommend that
1. Government should provide adequate funding.
2. Government and central bank should create secondary/ intermediary mortgage institution
3. The central bank should review the interest rate structure.
4. There should be a review of payment terms
The conclusion of the study is that depression in economy is the problem of mortgage banks in Nigeria. But if the recommendations will be considered and improved the hidden large potential for the development of mortgage bank in Nigeria will be achieved.
CHAPTER ONE
INTRODUCTION
A prominent feature of real property investment is that, it involves the expenditure of large sums if money. As a result, investors in real property hardly fund their projects alone instead they borrow part or all of their capital requirement form financial institutions. Lender usually require collateral securities form their borrower before granting loans to them. this provide an avenue through which loan made to borrower could be recovered in the event of unfavourable business condition or a default by the borrowers.
In mortgage transaction a person who borrows money with a property as security for the loan is know as a mortgage while mortgage is a person who lends money to another under the condition stated above.
The lest in respect of which the property is created is called mortgage lest.
Generally mortgage transaction involves the acquisition of a loan with an interest in property as security. The mortgage transfer his read property to the mortgage to declare his willingness to repay a loan and also provide means by which such loans could be indirectly recovered. The mortgage terms also empower the mortgage to reclaim his property after repaying his dest. Mortgage transaction arises due to lack of trust and uncertainties in the business world.
BACKGROUND OF THE STUDY
History of mortgage
Mortgage is a Norman French term which originated form the various modes of operation of pledges (Walmsely p.56).
A destor in the olden days pledged his farm-land to a creditor by transferring the physical enjoyment to him if the revenue were large enough they repaid the loan immediately but if not the money for repayment had to be raised separately.
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