Analysis of Lending Policies and Procedures of Primary Mortgage Institutions in Nigeria

This paper focuses on the constraints of mortgage financing arrangements in Nigeria. The study tries to examine the lending policies and procedures of primary mortgage institutions with a view to determining the constraints that hamper effective mortgage financing. A total number of six primary mortgage institutions that are licensed to carry out mortgage business in Nigeria were examined in order to determine the constraints that are associated with mortgage finance. The data collected were analyzed and presented using simple descriptive statistical methods. The results show clearly that problems ranging from high interest rates to that of the numerous requirements from applicants for loan, which in most cases they find difficult to meet, bedeviled mortgage financing. Besides, the inflationary rate in the country also contributes to mortgage finance constraints. It recommended among others that the Nigerian government should try to solve its economic problems that plague the financing of real estate development.