The Hindu Business Line : National Housing Bank plans new products

Mumbai June 2 The National Housing Bank is working on several new initiatives in the area of housing finance including the introduction of Certified Independent Mortgage Counsellors.

"These counsellors will represent the borrower," said Mr S. Sridhar, Chairman and Managing Director, National Housing Bank. Globally, such independent advisors help clients obtain mortgage finance at the most competitive rates from lenders.

Risky Proposition

Taking up the issue of affordable housing at the `National Conference on Affordable Housing,' Mr Sridhar, said that lending to the poor need not be a highly risky proposition. "Property developers should be more transparent and look at the volume game rather than the class game," he said.

The National Housing Bank plans to introduce new products like mortgage guarantee, title indemnity and reverse mortgage. The Bank is also working with housing finance institutions and self help groups, Mr Sridhar said.

Mr Sridhar said that the Bank hoped to be an information hub for the housing sector. "We are seeking guidance from the RBI on how this can be achieved," he said.

Bank Schemes

Expressing his concern about the shortfall of dwelling units, Mr P.P. Mitra, Economic Advisor, Ministry of Finance, said that the current shortage of 24 million units is likely to go up to 76 million by 2012.

He said there was an urgent need to leverage budgetary schemes like the Jawaharlal Nehru National Urban Renewal Mission, which currently have a restrictive spread.

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