housing - National Housing Finance Corporation

MANDATE
As a wholesale funder and risk manager, the Corporation is mandated to:
u undertake funding as a wholesale intermediary to promote broader access
to housing;
u underwrite the flow of wholesale funds to retail intermediaries (provide
cover, security or guarantee);
u undertake proactive programmes aimed at building institutional and
financial capacity at the retail level; and
u specialise in identifying, assessing, pricing, monitoring and managing
risks associated with the placement of wholesale funds with retail
intermediaries.
The NHFC defines the low- and moderate-income housing market as any
South African household with regular monthly income between R1 500 and
R7 500. This market sector is able to contribute towards its housing costs, but
finds it hard to access bank-funded housing finance.
CORE FUNCTIONS
As one of the eight Development Finance Institutions in
South Africa, the Corporation was established to:
u initiate and manage programmes to promote
increased engagement of the banking sector in the
target market;
u fund or underwrite specialised alternative lenders
who are able and equipped to operate where banks
find it difficult to do so;
u manage proactive programmes aimed at building
institutional and financial capacity at retail level, to
broaden access to housing finance and mobilise
funds; and
u search for new and better ways to mobilise, raise
and deploy housing finance from sources outside
the public sector in partnership with a broad range
of organisations.
NHFC ANNUAL REPORT 2006 1