CHAPTER ONE
1.0     INTRODUCTION
1.1     BACKGROUND OF THE STUDY:
Housing provides more than shelter for man because it encompasses all social services and utilities that are needed for a livable environment in order for any community to be worth living in housing accepted in man’s hierarchy of need to be next to food.
Odetundun (1995) affirmed that housing in most countries of he world was an important economic sector and the manner in which resources were mobilized for housing had a major effect on the economy. Fundamental to the provision of adequate housing in qualitative terms is the availability of housing finance. According to Olutuah (2001) housing quality in Nigeria is indeed poor; this can be glanced form he high rate of urbanization in the country which he described as social economically handicapped urbanization. The high rate of urbanization resulting form rural urban migration and high rate of population increase is without corresponding commensuration in the rate of economic development, social change and technological advancement. Urban poverty is thus concomitant of such development which finds ready expression in a high incidence of housing poverty.
As Muoghalu (1987) observed, housing poverty is determined by the mobility to afford standard housing thus, the provision of adequate housing is hinged on the accessibility of housing finance. In Nigeria, the problems of housing are enormous and complex but the private sector had contributed immensely to its provision in the country. Onibokun (1990) opined that the private sector provides a preponderate proportion of residential building in the country. The rapid rate of urbanization, high rate of inflation and instable economy have given to increase in cost of housing which is often beyond the capacity of the medium / low income groups.
As parts of the efforts in addressing housing problems in Nigeria, government has institute mortgage institutions to provide low cost housing loans that are accessible even to low income earners.
1.2     STATEMNT OF THE PROBLEM
The basic problem of mortgage institutions could be viewed from the following
·                    Increase in capital requirement
·                    High interest rate
·                    Management adequacies.
1.3     AIM AND OBJECTIVES OF HE STUDY
The aim of the study is to access the effect of mortgage institutions in the provision of affordable and sustainable houses in Nigeria.
The objectives of this study are:
1)                To identify the various functional / operational mortgage institution in Nigeria.
2)                To identify and evaluate the effect of mortgage institutions in the provision of affordable and sustainable housing in Nigeria.
3)                To identify the hindrances facing mortgage institutions in Nigeria