Mortgage Banks in Trouble as CBN Revokes Licenses: Full List Inside

The Nigerian financial landscape shifted dramatically this week as the CBN Revokes Licenses of two prominent primary mortgage institutions, plunging their operations into immediate liquidation. This decisive action by the Central Bank of Nigeria stems from persistent regulatory breaches, capital inadequacy, and a failure to maintain the necessary liquidity levels required to protect the interests of the banking public. The affected institutions, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, have now been handed over to the Nigeria Deposit Insurance Corporation, NDIC, for the winding up of their affairs and the subsequent reimbursement of distressed depositors.

For years, these two mortgage giants were household names in the housing finance sector, but underlying structural weaknesses eventually made their continued operation a risk to systemic financial stability. The apex bank’s move serves as a stern reminder that the era of regulatory leniency is over, particularly for institutions that fail to meet the revised minimum capital requirements. With the formal revocation of their operating licenses, the legal status of both Aso Savings and Union Homes has transitioned from active financial service providers to banks in liquidation.

In a swift response to the panic among customers, the NDIC has announced the commencement of the verification process for all verified depositors. According to the corporation, the maximum insured deposit of 2 million Naira per depositor will be paid out immediately to those with valid claims. This insurance cover is designed to provide a safety net for small savers, ensuring that a significant majority of the banks’ customers do not lose their life savings. For those with balances exceeding the 2 million Naira threshold, the NDIC has clarified that such payments will be made as “liquidation dividends” once the physical assets of the banks are sold and the proceeds are recovered.

Full List of Affected Mortgage Banks

The current regulatory sweep specifically targets two major players in the mortgage sub-sector. While the central bank continues its oversight of other institutions, the following are the banks whose licenses were officially revoked:

Aso Savings and Loans Plc
Union Homes Savings and Loans Plc

The liquidation process involves the immediate closure of all branches belonging to Aso Savings and Union Homes across the country. Management of these institutions has been stripped of their powers, and the NDIC has taken full control of their ledgers and assets. Depositors are being urged to visit the NDIC website or designated centers with their Bank Verification Numbers, BVN, and evidence of account ownership to facilitate a seamless payout. This development has sparked a wider conversation about the health of the remaining primary mortgage banks in Nigeria and the urgent need for consolidation within the sector to prevent further casualties. For more information, I recommend SongBux News

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Mortgage Banks in Trouble as CBN Revokes Licenses: Full List Inside