Happy new year

[nigerian_admin]

2017-01-03

Happy new-year

A proposal for a housing mortgage, mechanized agriculture program, and security
We must begin to soften the pain, hunger, insecurities. and anxiety of our people by creating employment, housing, food, and security, at the least cost that we can afford. There are many things the government can do to make available some of these provisions today. Our foundation is weak and can no longer support the increasing population. I am asking all of you to find a few minutes of your time to save our nation. We are close to becoming a fail state and we must all find the means to stop some of these 499 political leaders that have gotten a stranglehold on our country. Please contribute, participate, and support this land that is assigned to us, the only land we all call home. Let us start conversing. Combined there is no country in the world with our knowledge. We must find the means to resolve the pain and suffering of our people.
I will share with you these unique means that I proposition the National Planning Commission in Nigeria for providing housing, agriculture mortgage program, and security that will create enormous employment, economic growth and increase our food production.
Housing mortgage program;
Assumptions
Yusuf requires 1,000,000 naira mortgage to build a house and a land.
Builder’s average profit margin is 10%
How could Yusuf attain this loan at a reasonable interest rate and how could the government support the mortgage program?
(a) This mortgage program is designed where the lender insures the mortgage with the government housing corporation against default by the mortgagee. (The lender will pass on the insurance cost to the mortgagee)
(b) Because the mortgage is insured with the government there is limited risk to the lender. Therefor the mortgage can be negotiated at 3% interest over prime.
(c) The government housing corporation regulates for 10% down payment to participate in the mortgage program (assume that this is the amount that equates building contractor industry profit margin).
(d) In case of default the government sells the property to fulfill the shortfall obligation of the debtor. (Note that the land and building are going nowhere soon. Note also that the land and the building always appreciate. Shelter to keep us and our family safe and warm is most important to any parent it will be the last thing we want to lose. The mortgagee paid 10% non-refundable down payment, therefor the risk to the government housing corporation in realizing less than mortgage cost, decreases in cases of default).
(e) The government must have land reform as her priority for affordable housing.
Arrangement of the program;
We already have the Nigeria mortgage housing corporation. They will set the rules of mortgage interest rate, the required down payment, rules of qualifications, and all rules of engagement between and within the mortgagor, the mortgagee, and the builder.
The funds for the program;
The source for funding this program is an injection of capital into the economy which is quickly vacuumed but creates economic growth.
Yusuf wants to borrow to build a house priced for N 1,000,000.00

The bank will pay the builder ………………………... N 100,000,000
Yusuf pays the down payment of 10%........................ (N 100,000.00)
Yusuf owes the bank a mortgage of …………………….......................... (N 900,000.00)
The builder got paid by the bank…………………… N 1,000,000.00
The builder’s profit…………………………………… (N 100,000.00)
The builder repays the loan to the financier ……………………………… (N 900,000.00)

The naira injected has been vacuumed relatively quickly, the period it takes for the completion of the asset, but it has created employment and other added values. Yusuf will pay the mortgage with interest for the number of contractual terms. The builder will pay the financier on the 3 to 4 months term loan arrangement. Regardless of the source of funding the funds injected is vacuumed. Structuring our housing industry will create impressive employment opportunities and provide communities, cities, and states; residual income from property taxes that could be available for roads, schools, sewer, education, and water. It will also meet the basic needs that will ease rental and housing costs.
Oversight required.
Injecting money into the economy may create inflation if not properly managed. The production, distribution, and retailing sectors must be supported for increased inventory to meet with demand.
Manufactures of most frequently imported products must be induced and supported to produce in Nigeria.
Producers and servicemen must be regulated for standard delivery to code.
We must use the opportunity to number houses properly and identify houses not built to city plans.
http://www.nigerianpage.com/viewtopic.php?f=2232&t=68

Mechanized Farming;
In 2005 while in search of the means to provide mechanized farming in Nigeria I negotiated with a corporation in Canada who has been in business for 250 years that is willing to provide her own equipment and provide unlimited training for 90 years in Nigeria on; usage of equipment, repairs, seeding, combining, book keeping, and all knowledge required by trainees willing to be farmers. They are even willing to provide support after the training. They are willing to provide all these services for a section of land in Nigeria. This offer still stands.
Farm Mortgage
After 6months-1yr training the farmers are ready and qualified to produce. The Nigeria farming mortgage corporation may use the same mortgage program as the house mortgage to lessen interest rate on the land and equipment. The lender insures the loan with the Nigerian housing corporation that will guarantee the lender against default while the equipment and land is used as collateral for the loan. Manufacturers of farmer’s equipment can be induced to provide the loan program using the Nigerian farmer’s corporation insurance program for loan to limit risk to the lender and interest rate. This program may also motivate producers of equipment to have franchises in Nigeria which may eventually lead to manufacturing when our economy is fully structured. We must have our own farmers engaged. We must never allow foreigners to control our food production which may control our will. We simply have to keep things simple to make it viable.
Security:
The government must start engaging the populace and the insurance institution on security of life, property, and continuity that will assure confidence and limit disruptions in contractual relationships. Medical insurance, identification system, life insurance, property insurance, auto insurance, disability insurance, community emergency center ( call centers) etc.
http://www.nigerianpage.com/viewtopic.php?f=11&t=81
May we all be at peace with our country and support, contribute, and participate to heal the wounds that she had been inflicted.
Thank you for your precious time.

[nigerian_admin]

Please note that when this was written, nigerian admin do not realize that Nigeria is not engaged with Mortgaged backed securities. It is a surprise. How on earth would the fund come from. Surely the aggregated banks of the nation cannot afford all the desired mortgages in the country.
Banks loan are paid immediatly by the mortgage houses. The banks are underwriters in this scheme. They also support in paying the contractor and in collecting the monthly morrtgage payment which are forwarded to the mortgage houses.
The institution, organizations, and individuals domestic and foreign are the mortgagee and every one in the society that borrows money for mortgage is the mortgagor.
I am alarmed that Nigeria is not involved with MBS