The National Pension Commission (PenCom) on the 23 September 2022 (two months ago) disclosed that it has approved using 25% of Retirement Savings Account (RSA) balance for payment of equity contribution towards residential mortgage.
RSA holders in anticipation rushed to their Pension Fund Administrators (PFAs) to apply to use part of their RSA balance for equity contribution for residential mortgage, only to be told that they technically can not do it yet because the list of approved Mortgage Lenders has not been released by PenCom.
A Mortgage Lender is a Primary Mortgage Bank or a commercial bank licensed by the Central Bank of Nigeria (CBN) which has residential and commercial mortgage lending as a permissible activity, and meet the eligibility criteria specified in the guidelines for RSA for Mortgage.
Ordinarily, we would have expected that the list of Mortgage lenders should be readily available on CBN website, or should have been received from the Central Bank of Nigeria (CBN) before the guidelines on RSA for Mortgage was released. In fairness to CBN, we checked CBN website and we found the list of Primary Mortgage Institutions and list of Commercial Banks in Nigeria, so we would conclude that PenCom needs to officially get the list from CBN, and also because all commercial banks might not be licensed by CBN for, residential and commercial mortgage lending as a permissible activity.
Interestingly, we have now received reports that PenCom is likely to release the approved list of Mortgage Lenders by the end of November 2022 (finger crossed) and the list is being delayed because the Central Bank of Nigeria is yet to respond to PenCom’s letter for the list of Mortgage Lenders.
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