THE ROLE OF FEDERAL MORTAGE BANKER IN ACHEVING ECONOMIC DEVELOPMENT OF NIGERIA
PREFACE
 The Role federal mortgage banker in achieving Economic Development in Nigeria” is a term paper presented by a student of Institute of Management and Technology (IMT). This term paper is arrange in such a way that one chapter flows and usually leads to another.Organize in three chapters, the study starts in chapter one with the introduction of mortgage bank in Nigeria. This includes the definition, objectives, significance of the study etc. Chapter two is talking about the reasons for the establishment of federal mortgage bank, its organizational structure  mode of operation and the rest of the whole chapter three is all about summary of findings and conclusion.However, this work is produce for everybody especially students in higher learning.
TABLE OF CONTENT
CHAPTER ONE                  
INTRODUCTION                                                                 
1.1         BACKGROUND                                          
1.2         BACKGROUND OF THE STUDY            
1.3         OBJECTIVES OF THE STUDY                
1.4         SIGNIFICANCE OF THE STUDY            
1.5         SCOPE AND LIMITATION OF THE STUDY      
1.6         DEFINITION OF TERMS                           
CHAPTER TWO
LITERATURE REVIEW                             
2.1         REASONS FOR THE ESTABLISHEMENT
 OF FEDERAL MORTAGE BANKS         
2.2         OWNERSHIP AND CONTROL OF
FEDERAL MORTAGE BANK                   
2.3         THE MODE OF OPERATION                   
2.4         OPERATIONAL GUIDELINE                                
2.5         THE SOURCE OF FUNDS                       
2.6         CONTRIBUTION OF MORTAGE-
 BANKS IN ACHIEVING ECONOMIC-
 DEVELOPMENT IN AN ECONOMY                  
2.7         PROBLEMS AND PROSPECTS                         
CHAPTER THREE
3.1         SUMMARY OF FINDINGS                                    
3.2         CONCLUSION                                                        
3.3         RECOMMENDATION                                                        
3.4         REFERENCE                                                          
CHAPTER ONE
INTRODUCTION
1.1         BACKGROUND OF THE STUDY
Mortgage banks are financial houses that act as specialist in providing money and facilities which encourage people, business firms to get their own houses without first saving the fund required. Housing is one of the important factors that determines urban firms and constitute the single most serous problems facing large cities in Nigeria today. In the 1950s the need to finance housing in Nigeria remained so small, mainly because of lo urbanization level.
 The buoyancy of the Nigeria economy in the 1970s and the uneven spatial distribution of industrial development, accelerated the rate of urbanization in Nigeria. The hereto uncontrolled and unplanned urbanization forms. There exist today  a yawning gap between the demand and supply of decent accommodation. The consequence of excess demand over supply, was high rent and the growth of informal rationing system which discriminated against the poor to the extent that over half of the urban population in Nigeria live in slump.
Against this background and considering the fact that housing provides the physical frame work in which man’s, human, social economic and natural resources and realized, entrenched and integrate; it becomes obvious that adequate housing deserves great attention.In  realization of the importance attached to housing the federal Government of Nigeria established the federal mortgage back of Nigeria in the year 1977 to take over the Assets and liabilities of the Nigeria Building society (NBS), which had been in operation in the country. Perhaps  the federal mortgage bank of Nigeria had the initial capital of N20 Million and was later received to N 150 million in the year 1979.
1.2         STATEMENT OF PROBLEMS
Considering the fact that housing provide the physical frame work in which human, social, economic and cultural resources are realized, entrenched and integrated it becomes obvious that  adequate housing deserved grate attention;
However, there are problems inhibiting the  federal mortgage banks of Nigeria; such problems are as follows:
1.    Lack of adequate
2.    high rate of inflation
3.    inadequate infrastructural facilities
4.    Internal financial management constraints.
LACK OF ADEQUATE FINANCE: Lack of adequate finance constitutes a fundamental center-piece without as well organized  an efficient housing system. Nigeria present housing financial system is severely under-developed and ill-equipped to mobilize and channel saving to the housing section. This is because it is difficult to mobilize substantial financial resources for channeling fund into housing sector.
HIGH RATE OF INFLATION: High rate of inflation is a problem to federal mortgage finance. Inflation has effected all sector of the economy especially building materials. It also happens that when a customer applies for a housing loan from  federal mortgage finance, this will take more than six month before approving loan to the loan applicant. This cumbersome process for obtaining housing or property loan from most of the mortgage finance houses in Nigeria leads to increase in the value of the project so that the loan sector will be tempted to divert the loan to another purpose.
INADEQUATE  INFRACTRUCTURE FACILITIES: inadequate infrastructure facilities create  a very problem to federal mortgage finance. Some state in Nigeria most of the branch offices are located in places where there is no accessible road, no electricity  etc. in view of these, most of the workers refuse going on transfer to such areas.
INTERNAL FINANCIAL MANGEMENT CONSTRAINTS
 Internal to the bank, was lack of central cash flow in the area of Assets management and accounting operation which always restricted the banks ability to maintain a sound financial position. There was unregulated disbursement of funds which affected the liquidity position of the bank adversely.
1.3         OBJECTIVES OF THE STUDY
There are reasons that motivate the establishment of federal Mortgage bank of Nigeria. These reasons helps to improve the existence of mortgage institution Nigeria.
(1)          To provide credit facilities to all mortgage institutions for transmission to individual borrowers at subsidized rates.
(2)          To finance the implementation of government housing programmes
(3)          To accept deposit from the public through savings account facilities.
1.4         SIGNIFICANCE OF THE STUDY
 The federal mortgage institution plays a vital role in the economy especially in financing housing. In realization of the importance attached to housing. In realization of the importance attached to housing, the federal government of Nigeria established the federal mortgage bank of Nigeria in the year 1977 to take over the assets  and liabilities of the Nigeria Building society which was the first mortgage bank in the country.The provision of long term facilities to mortgage institution in the country at such rates and upon such terms as may determine by the board in accordance with the policy directed by the federal executives council being rates and terms designed to enable the mortgage institution to grant comparable facilities to Nigeria individual desiring to acquire houses off their own.
To make provision with the approval of the commissioner, at competitive commercial rates of interest of credit facilities to commercial property developers, state developers and developers of others and other specialized type of building.
1.5         DEFINITION OF TERMS
1.            The federal mortgage Bank: This is a financial houses that act as specialist in providing money and facilities which encourage people, business firms to go their own houses without first saving the fund required.
2.            Mortgage: This simply means a home loan. A legal agreement by which a bank or similar organization lend money to an individual to buy houses etc. and should be repaid  back over a particular number of years. Thus, this means the sum of money borrowed.
3.            The Mortgagee: Is a person or an organization that lends money to people o buy houses etc,
4.            Mortgagor: A person who borrow money from the federal mortgage bank of Nigeria or a similar organization to buy a house, etc.
5.            Urbanization:  This simply means an area having a lot of cities, towns where people is living and working.
6.            Disbarsement: This means to pay money to somebody from the amount that has been collected for a purpose.