CBN appoints CIBN as arbitrator for mortgage banks
The Chartered Institute of Bankers of Nigeria on Monday said it has been appointed by the Central Bank of Nigeria as the secretariat for the Alternative Dispute Resolutions (ADR) financial regulator for mortgage banks.
ADR refers to any means of settling disputes outside of the courtroom, including early neutral evaluation, negotiation, conciliation, mediation, and arbitration to avoid costs of litigation, time delays among others.
In a statement by CIBN, the CBN established a sub-committee on ethics and professionalism for mortgage bankers in a renewed effort to build public confidence as well as engender stability in the mortgage banking sub-sector of the Nigerian banking industry.
The statement said the sub-committee would ensure the settlement of disputes between mortgage banks and their customers on one hand, and among the mortgage banks, on the other.
“The membership of the sub-committee includes representatives of the CBN, Nigeria Deposit Insurance Corporation, the CIBN, Mortgage Bankers’ Committee, Haggai Mortgage Bank Limited, Abbey Mortgage Bank Plc, Mortgage Banking Association of Nigeria and Imperial Homes Mortgage Bank Limited,” the statement read.
In his reaction, the Registrar/Chief Executive Officer, CIBN, Seye Awojobi, who also doubles as the secretary of the sub-committee, urged relevant stakeholders to take opportunity of the platform to resolve their disputes with the banks and among themselves.
He charged mortgage banks to set up a complaints desk to handle customers’ complaints, stressing that only the cases not resolved by the banks would be brought before the sub-committee for adjudication and settlement.
“The sub-committee will not handle cases that have already been reported to and handled by the regulatory authorities or cases before the court. Furthermore, it will not entertain cases that are more than six years old in line with Statute of Limitation Act,” Awojobi added.
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