NHB to start mortgage guarantee company by June

The National Housing Bank (NHB) will roll out its mortgage guarantee company by June this year. The firm is being set up to compensate banks and housing finance companies (HFCs) in case of defaults by home loan borrowers. For technical assistance, NHB has roped in a US-based mortgage guarantee firm as its fourth partner. The other two partners are the Asian Development Bank (ADB) and International Finance Corporation (IFC), both having a 10 per cent stake in the company. Declining to give out the name, NHB Chairman R V Verma said the international partner would provide the technical expertise required to run the proposed company. “They (the US-based company) are an experienced international player in mortgage guarantee business and also our strategic partner,” said Verma.