NHB plans online mortgage database

The National Housing Bank (NHB), which launched the first residential house price index (Residex) in India, will extend its coverage to 35 cities this year and is collecting 30,000 entries for the same.

Next fiscal, the bank plans to have an index for all the
63 cities covered by the Jawaharlal Nehru Urban Renewal Mission. At present, a Residex is available for 15 cities, including the four metros and Bangalore, Hyderabad, Pune, Ahmedabad and Patna. The indices all have a base year of 2007 and base value of 100.

NHB is also creating a platform for electronic filing of mortgage loans disbursed by banks, so that lenders do not mistakenly give out a double loan for the same property, said chairman and managing director S Sridhar.

He added, “We are also trying to form a uniform valuation standard for developers in a few months and every developer should undertake credit rating and project grading for projects above certain value.”

NHB says the industry will need Rs 6.5 lakh crore over 5 years for affordable housing projects. The money would be disbursed through banks and housing finance companies.

Sridhar said, “Insurance monies and pension funds should be securitised for affordable housing, but excess securitisation should be avoided so that we don’t end up in a mess. Also, funds from capital market should be flown into affordable housing.”
NHB is close to finalising a partner for its private mortgage guarantee fund for lending to the middle income segment, and a decision will be taken in a few months, Sridhar added.

A mortgage guarantee company is one that acts as a guarantor for a mortgage guarantee to the bank.