MORTGAGE ARRANGEMENT IN DEPRESSED ECONOMY (A CASE STUDY OF FEDERAL MORTGAGE BANK AWKA BRANCH)

ABSTRACT
The title of the project is “MORTGAGE ARRANGEMENT IN DEPRESSED ECONOMY (A CASE STUDY OF FEDERAL MORTGAGE BANK AWKA BRANCH. The objective of the study is to find out the causes of unemployment and causes of high rates of business failure. To find out how government policies discourages the emergency of vibrant mortgage bank. To know why mortgagors default and strategies to use to recover unrepaid loan. To know the causes of inflation in an economy. To offer suggestion that will help mortgage banks in creating a conducive working environment. The instrument used in data collection is secondary source which comprises textbooks, libraries professional, trade organisation, questionnaire and internet services. Consequently to this analysis a summary of finding was obtained that most of the respondents companied about rate of payment it also discover loan foreclosures and loan disbursement. In the case of the study it recommends that government should provide adequate fund and also create secondary / intermediary mortgage institution. It also recommend that central bank should review the interest rate structure and a review of payment terms. 


CHAPTER ONE
1.0      INTRODUCTION
A prominent feature of real property investment is that it involves the expenditure of money. As a result, investors in real property hardly fund the project alone, instead they borrow part or all their capital requirement from financial institutions.
Lenders usually require collateral securities form their borrower before granting loan to them. This provides an avenue through which loan made to borrower could be recovered in the event of unfavorable business condition or default by the borrower
1.1      BACKGROUND OF THE STUDY
HISTORY OF MORTGAGE
Mortgage is normal French term which originated from the various modes of operation of pledges (Walmsely (P.56).
            A debtor in the olden days pledges his farm land to a creditor by transferring the physical enjoyment to him, if the revenue were large enough, they repay the loan immediately but if not the money for repayment had to be raised separately.
            The former arrangement was called a “phle pledge” (mortgage) while the later a “dead pledged” (mortgage) thus the word “mortgage was formed from dead pledge” mortgage which represent a situation where the proceed from a security could not repay the loan borrowed.
Resulting in a search for alternative loan through which repayment could be made.
            As the practice of mortgage developed further, it becomes usual to transfer the debtors landout-right to creditor on the ground that the debtor could redeem it, if the debtor defaults the land automatically becomes the creditors own.
            The principal is still effective till date and maintains that property serves as security only and should therefore be released whenever the loan is repaid.
            In Nigeria today there is large-scale default in mortgage repayment due to the adverse economic circumstance. Lenders thus resort to auction their operating cost.

            This practice however is usually against the intention of most financial institution in Nigeria because of harsh picture it points such an establishment in the eyes of the society. 

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Item Type: Project Material  |  Attribute: 47 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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