Authors : Akinjare Victoria, K.A. Adetiloye, Isibor Areghan Akhanolu and Okafor Tochukwu
Abstract: The problem of housing affordability and the provision of quality services by the mortgage industry which includes financing have always being a major concern to the public as a whole. This research is therefore aimed at discovering the activities, achievements and limitations of the mortgage industry especially in the primary mortgage institutions using union homes and loans as a case study. The study is focused on the operations of union homes savings and loans PLC because it is one of the most prominent PMI’s in Nigeria. The study involves the distribution of questionnaires to the staff of union homes. It was discovered that Union homes has contributed a great deal to housing finance sector in Nigeria as a result of funding several housing estate and granting of both social and commercial loans to individuals for housing purposes. The study also looks into the problems affecting PMI’s and problems associated with mortgage sector in Nigeria. It was further discovered that most PMI funded loans do not take >3 week before they are approved and this is preferred by the mortgagors not minding the high interest rate and mortgages loans granted are given on short term basis. It was therefore recommended that low interest rates on the PMI funded loans should be introduced by PMI’s and PMI’s should be encouraged to improve their capital base in order to empower them for greater effectiveness in financing housing. This will give them wider coverage and enable them access greater pools of funds.
Akinjare Victoria, K.A. Adetiloye, Isibor Areghan Akhanolu and Okafor Tochukwu, 2016. The Assesment of the Contribution of Primary Mortage Institutions to Housing Finance in Nigeria: A Case Study of Union Homes Savings and Loans PLC. Asian Journal of Information Technology, 15: 2094-2100.