CHAPTER ONE
1.0    BACKGROUND OF THE STUDY
1.1    INTRODUCTION
As it generally known that shelter is as important as food and it is one of the basic necessities of life for human being. As this result, the main motive of man is therefore to own a house on earth where he and his family will be secured and protected against any external forces.
To secure a house, it requires lump amount of capital which is not easily available to the investors no property and as a result, made the dream to be realized by just few people, they therefore rely on external source of finance to carry out such project since the personal savings and income are not enough to execute the development. Hence, the purpose of this study is to asses the roles and problem f financial institution in the provision of capital needed by the investors in real property development.
    Real property development is the application of capital managerial skills, and entrepreneurial activities to the economy of land resources development whose form is subordinate to the constraint imposed on it by nature. Illinois (2001) define it.
    In Nigeria today, the demand and supply of real property in case of land and building are inelastic relative to price changes. Some of the factors resulted to these are:-
(i)    General growth and development of the community
(ii)    Change in taste, fashion and general standard of living.
The institutional frame work for housing is very rudimentarily developed to carter for the dare need oof individual and groups. In the past, few decades, the federal government has direct it effort toward encouraging every Nigerian to own a decent and affordable house. Also, in alleviating this problem, government has come out with an enactment and launching some decrees on construction policy etc. All these need stern implementation in real property market. The financial institution is the last resort to remove the friction by provoking mortgage finance. This is used to finance real property that can be offered as a security for the loan. Such as owner occupied houses, commercial properties, industrial outlet, agricultural building and undeveloped land.
It is therefore, important to emphazise that this study is concerned with critical analysis of the activities of federal mortgage. Bank of Nigeria with a view to examine the activities of the bank as well as their problems. Identifying their problems with regard to granting of mortgage loan and making recommendation.
1.2    STATEMENT OF THE PROBLEM
From the point of view of the significant event of the oil boom in 19770 and Udoji award of 1976, investment in real property increases greatly due to availability of capital for development. The promulgation of land use Decree No.6 of 1978 caused a turning in the segment of property market. From the early 80’s landed properties vested in each state of land and making and supply relatively scarce. This resulted into a great problem in properly development. This study is meant to look into how these problems can be reducing by examining the roles of such financial institution in property development.
1.3    AIMS AND OBJECTIVES
The aim of this study is to asses the roles and problems of financial institution in real property development with special focus on federal mortgage Bank of Nigeria.
To achieve the above aim the following objectives are included:-
1.    To examine the roles and functions of federal mortgage bank of Nigeria.
2.    To find out their sources of fund.
3.    To examine the procedure in giving out loan to the applicant
4.    To appraise their performance over the years
5.    To examine the problems facing by the institution and the applicants
6.    To prefer useful recommendations to the identified problems.
1.4    SIGNIFICANCE TO THE STUDY
The federal mortgage Bank performs the functions mentioned below:-
1.    To provide social loan to individual for purposes of individual homes.
2.    To dictate the level and pace of growth industry and minimize avoidable fraudulent.
3.    To provide commercial loan to corporate bodies that want to build house for sell or to let.
4.    To provide equitable distribution of mortgage landing activities all over the country.
The scope of the study cover Federal mortgage Bank Ibadan in Oyo state.