Tag: National Housing Bank

Housing Finance

NHB slams home financiers for selling insurance policies with housing loans

representative image The National Housing Bank (NHB) has reprimanded home financiers for mis-selling insurance policies bundled with housing loans. The regulator has instructed these companies to stop bundling insurance products without adequately informing borrowers about the terms and conditions of the policies. In two separate communications – dated March 12, 2025, and December 10, 2024 – the NHB has directed housing finance companies (HFC) to obtain explicit consent from customers and provide them with insurance options from at least two providers, ensuring greater transparency and competitive pricing.This directive follows a warning issued to HFC CEOs in January, where NHB had…

Housing Finance

NHB steps up surprise checks to gauge housing finance companies’ health

The National Housing Bank (NHB) is holding surprise inspections of mortgage financiers to ensure their proper functioning after the recent discovery of fraud at Aviom Housing Finance, said two officials familiar with the matter. These investigations are in addition to two annual credit reviews NHB usually performs of mortgage financiers. Officers at the quasi-housing finance regulator are currently focusing on how refinancing funds are being used to ensure their proper allocation, the officials said. They are also verifying whether housing finance companies (HFCs) are accurately reporting data on bad loans and validating the authenticity of their investment portfolios. “NHB’s primary…

Housing Finance

National Housing Bank expects RMBS firms to raise over Rs 10,000 crore in FY26

representative image MUMBAI: The country’s maiden residential mortgage-backed securities were listed on the market on Monday, and housing finance regulator NHB said it expects firms to raise over Rs 10,000 crore through the route this fiscal. The National Housing Bank-promoted RMBS Development Company (RDCL) listed the first-ever set of securities of Rs 1,000 crore maturing in 20 years with a coupon of 7.26 per cent payable monthly, on the NSE. NHB Managing Director and Chief Executive Sanjay Shukla said he expects up to 10 more such transactions in the fiscal year through which lenders will raise between Rs 10,000-12,000 crore.…