NAN-HE-3
Amendment
By Lilian Chukwu
Lagos, June 16, 2017 (NAN) Mr Kingsley Theophilus, Chairman, African Shelter Support and Empowerment Initiative, on Friday called for amendment of the Mortgage Foreclosure Law to promote efficient operations by mortgage banks.
Theophilus made the call in an interview with the News Agency of Nigeria (NAN) in Lagos.
Mortgage Foreclosure Law regulates how a mortgage bank recovers its loans at the failure of the borrower to fully repay.
According to Theophilus, the amendment is necessary because mortgage banks will make losses in situations where a loan borrower defaults in repayment.
He told NAN that application of the law in Nigeria did not conform to its objectives and what obtained in other countries.
“There is the need to amend the law to suit its objectives and facilitate recovery of mortgage loans at failure of the borrower to repay, without any judiciary interference.
“In other countries particularly Ghana, when a borrower defaults, the mortgage bank proceeds to recover the loan by taking possession of the collateral without any court stopping it.
“But in Nigeria, when a borrower defaults, the person goes to court for defence and the court presides over the case.
“The case will linger in the court for years, and most times, results in loss of the loan by the mortgage bank,” he said.
He said that one of the objectives of the law was to provide security for mortgage banks in performing their duties.
Theophilus said that the reverse was the case in Nigeria, noting that it did not encourage growth and smooth operations of the mortgage banks.
He suggested that the Nigerian mortgage banks should be allowed to freely operate like others in other countries to be able to recoup their investments, make profits and remain in business. (NAN)
LUC/IKU/IGO
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(Edited by Tayo Ikujuni/Ijeoma Popoola)