MORTGAGE INDUSTRY FINANCIAL RISK TOLERANCE AND MORTGAGE BANKS CREDIT DELIVERY IN NIGERIA
ALAGBA, Ochuko S.
Department of Accounting, Banking and Finance, Faculty of Management Sciences,
Delta State University, Asaba Campus, Nigeria
AWA, Kalu Idika
Department of Financial Studies, Faculty of Management Sciences,
National Open University of Nigeria
and
EDIRI, Ugherughe
Department of Accounting, Banking and Finance, Faculty of Management Sciences
Delta State University, Asaba Campus. Nigeria
ABSTRACT
The study examined the effect of financial risk tolerance on the performance of Mortgage Banks. The ordinary least square (OLS) and correlation methods were adopted in analyzing the data for the study period, 1992 to 2018. The finding shows that the mortgage products offered in the market are: Individual loans, Estate development loans, and the National Housing Fund (NHF) loans. All the independent variables have no significant impact on LOG (THL) at a 95 percent level of confidence, although LOGSV was significant at 90 percent. The Coefficient of LOGTR is negative, which connotes that a unit increase in LOGTR can lead to 0.017531 decreases in the magnitude of LOGTHL in Nigeria. The level of financial risk tolerance of the mortgage industry is insignificant; hence the loans granted by mortgage banks are small when compared to the savings and other income received by Mortgage Banks. The study recommends, among others, the introduction of additional mortgage products and the creation of an enabling environment to attract more investors into the industry.
Keywords: Corporate finance, National housing fund, Primary mortgage bank, Financial risk tolerance, Housing finance market