TMRC is a non-deposit taking specialized financial services institution incorporated in January 2010. It is a Mortgage Liquidity Facility (MLF) which provides refinancing to primary mortgage lenders (PML). This type of lending is also referred as wholesale or secondary market lending.
TMRC is owned by 14 institutions namely CRDB, AZANIA, TIB, EXIM, NMB, DCB, NIC, ABC, NBC, PBZ, BOA, I&M, National Housing Corporation and Shelter Afrique.
TMRC will refinance portfolio of residential mortgage loans from member banks and non- member banks. The member banks are banks that are shareholders of TMRC.
All institutions that have interest in mortgages, housing financing are eligible to join and invest in TMRC.
TMRC will only refinance a portfolio of mortgage loans not individual loans. The following requirements must be met to qualify for refinancing:
Initially, TMRC will refinance PML’s loans using the World Bank loan and shareholders’ equity. In subsequent years, TMRC will fund their operations utilizing a combination of the remaining balance of the World Bank loan and by issuing corporate bonds in the capital markets.
The following are some of the benefits of becoming a TMRC shareholder:
TMRC Loans are rollable where borrowing institution will only pay interest quarterly and then principal at maturity where can decide to pay back or rollover for additional term. Currently TMRC is doing 5 years terms on the rollover term but foresee going to 7 - 10 years in the future. The funds we are using currently from World Bank are 30 years with 10 years grace period.
The investment will pay dividend and off course share value appreciation but more importantly a line of credit of up to 20 times your investment amount.
Exit can be done by selling your shares to another investor.We are also planning an IPO in 2018 which should provide an exit opportunity.