1. Mortgage Warehouse Funding Limited
A Multi-seller Asset Backed Commercial Paper Programme
Presentation to the Abuja Housing Show
17/07/17

2. Overview of the Proposed Mortgage Warehouse Facility Provider
Introduction
Overview of the Proposed Mortgage Warehouse Facility Provider
Incorporated in 2014, Mortgage Warehouse Funding Limited (“MWFL” or the “Conduit”) is an A1 rated conduit set up to operate as a Special Purpose Funding Company (“SPC”)
It is sponsored by Member Mortgage Banks (MMBs), Nigeria Mortgage Refinancing Company (“NMRC”), the Africa Local Currency Bond Fund (“ALCB”), CitiHomes Finance Company (“CitiHoms”) and Dunn Loren Merrifield Advisory Partners
MWFL’s mandate is to provide short term liquidity to its Member Mortgage Banks (“MMBs”) in order to enable MMBs originate new eligible mortgage loans strictly based on NMRC’s Uniform Underwriting Standards
CitiHoms will operate the Facility and provide all staffing, technical, and administrative services required for the Facility to operate on an arms length basis

3. Brief Description of MWFL
Funding Gap in Mortgage Origination
MWFL will be the first-of-its-kind warehouse line of credit provider in the Nigerian mortgage market and will operate with the sole objective of plugging the current funding gap faced by MMBs
Mortgage Warehouse Funding Limited
Eligible Primary Mortgage Lenders
Provide interim financing
Refinances mortgage loan portfolios
Refinancing Vehicle
Financing Gap
Pre-financing Vehicle
Originate conforming mortgages
Provide long-tenor mortgage at affordable rates

4. Brief Description of MWFL (contd.)
MWFL will fund the mortgage prefinancing demand of MMBs through the issuance of high quality investment grade rated commercial papers into the money markets...
Mortgage Warehouse Funding Limited
Asset-Backed Commercial Papers
Bank 1
Bank 2
Bank 3
Bank 4
Member Mortgage Banks
NMRC receives mortgage pool information at the point of prefinancing to commence prequalification for refinancing
Investors
CPs issued in tranches:
Tranche A – A1 rated
Tranche B – A1- rated
Potential investors will include PFAs, Insurance Companies, Banks, and Money Market Funds
Homeowners
MMBs originate NMRC conforming mortgages

5. Brief Description of MWFL (contd.)
Key Parties & Sponsors of MWFL
NMRC
ALCB
CitiHomes Finance Company
MBAN and its
(Member Mortgage Banks)

6. MWFL Proposed CP Funding Program
Components of the Proposed CP Programme
Maturity Period
Expected tenor of 182 days however may issue CPs with tenors ranging from 15 days to 270 days.
Proposed Size of Initial Issuance
The size of each tranche of CP issuance will be based on:
the principal value of pre-qualified loans from MMBs
Prevailing economic and market condition
Settlement
Through proceeds from NMRC refinancing by way of a Liquidity Asset Purchase Agreement, or CP rollovers

7. MWFL Proposed CP Programme
Underlying Mortgage Funding Structure
The respective ranking of funding structure for an individual property within each eligible mortgage pool will be as below:
CP Credit Enhancement
Senior CP
Sub. CP
58.4% / 48%
42.4% / 28%
4,800,000.00
1,600,000.00
2,000,000.00
10,000,000.00
Senior CP(48 %)
Sub CP(16 %)
MWFL Loan Portfolio Concentration
Exposure Limit to Single Obligor
Maximum MMB Single Loan Concentration
20%
1.5%
MMB Contribution(16 %)
Homeowner’s Equity(20 %)
Total Property Value
MWFL currently has seven (8) Member Mortgage Banks already signed up to the Program, with interests from more mortgage banks to participate in the Program.

8. Credit Enhancement Structure
Risk-Based Credit Enhancement Structure
Secured off-take
Over-collateralisation
Senior/
Subordination
Substitution or Recourse
Program Wide Credit Enhancement
External
Internal

9. MWFL will complement the activities of NMRC…
Rationale for a MWFL
MWFL will complement the activities of NMRC…
The funding program of MWFL will help build the mortgage loan origination capacity of its MMBs
Funding Capacity Building of MMBs
The activities of MWFL will complement those of NMRC in increasing off-take (purchases) of new homes
Increased Housing Supply
The activities of MWFL will lead to a direct and immediate surge in the creation of mortgage pools for refinancing
Surge in Creation of Mortgage Pool
The effects of MWFL funding of primary mortgage origination will connect mortgage funding to the capital markets
Helping to Actualise NMRC’s Primary Objective

11. Mortgage Market Overview
Expected Overview of the Mortgage Finance Market with MWFL and NMRC
Money Market Investors
Mortgage Warehouse
Facility Provider
Refinancing
Pre-financing
Invest in Notes
Issue bonds
Capital Market Investors
Issue Short-term Security Notes
Invest in bonds
short term/interim funding long term/permanent funding
Eligible Primary Mortgage Banks
NMRC

12. Thank You