DAI Global International STTA - Innovative Mortgage Bank Jobs in Ethiopia

DAI Global International STTA - Innovative Mortgage Bank Jobs in Ethiopia


Closing date: 12 Mar 2019

International STTA - Innovative Mortgage Bank

Period of assignment: 30 days

Background

DAI Europe, together with consortium partners, is managing Enterprise Partners (EP), which aim to support and transform the private sector and Ethiopia has continued economic growth over seven years.

EP is utilising the Making Markets Work for the Poor approach (M4P) and has two main pillars to achieve the goal of integrating the poor, and especially women, in sustainable economic enterprises that create jobs and improve incomes.

The EP pillars are:

The Agro-Industrial Group is expected to achieve the outcome of increasing returns on investment (productivity) in the identified sectors of cotton/textiles, livestock/leather and horticulture, in order to achieve the impact of creating jobs and raising household incomes.

Additionally this pillar will incorporate the promotion of green growth awareness and addressing women’s economic empowerment.

The Finance Group aims to achieve the outcome of increasing the investment levels and access to financing in the economy, particularly to the private sector.

Background specific to this assignment

Traditionally, banking systems have always included residential mortgage loans as part of their loan portfolios as part of retail banking activities. This intervention aims to facilitate the creation of a mortgage-financing bank for middle-income households.

As mortgage lenders, key function is to provide funds for the purchase or refinancing of residential properties carried out in the primary mortgage market.

When a bank originates a mortgage loan, it creates two business units: a loan and the right to service the loan. This intervention is looking to support strategy and implementation for the establishment and operation of such mortgage bank as well as investment in capital mobilisation.

Furthermore, the intervention is supporting the development of international-standard best-practice retail lending as well as residential real estate lending procedures and process. The Bank structure will be a share company, as per the law of the land.

Founders are looking to raise capital in the local market since foreign investors are not allowed in the financial industry of Ethiopia.

Purpose

The purpose of this TOR is to identify a short-term consultant that will create a business model for a new upcoming mortgage bank, and mobilise capital from local sources. The consultancy will be internationally advertised then shortlisted by EP and founders.

The STTA will support and guide management and the board to outline comprehensive strategies and goals of mortgage banking operation. STTA leads the Management and its board should be set to reasonable limits, guidelines, and measurement standards for the bank’s operation.

Since the Bank will be looking to mobilise capital local source, the STTA is looking to support the Bank in preparing private placement memorandum. Private-sector led Housing finance banking will be a new introduction to the country, the founders believe they can launch a successful housing bank, and they require technical assistance in developing a business strategy.

The consultant will draw a comprehensive strategy that makes the new private sector led housing bank highly
efficient and effective, able to meet adequately it’s fair share of the demand for housing in Ethiopia.

Specific task

  • Mortgage banking is affected by economic conditions and new legislation, regulations, accounting principles, examination efforts, and legal actions. The short-term technical assistant is required to

  • Assess of regulatory framework, and compare to international practice.
  • Design recommendation of common banking structure benchmarking international practice.
  • Support the founders to develop strategy and goals of its mortgage banking operation;
  • Strategic planning and business plan should include the activity, risk, and goals of the bank’s operation.
  • Assess the fair lending requirement of the country, and recommend effective procedures and controls to help avoid identify practices that could result in discriminatory treatment of borrowers.
  • Document risk associated with mortgage banking based on international standard defined categories of risk: credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation.
  • Assess types of international mortgage loans: government loans and conventional loans benchmarking international best practices.
  • Identify mortgage international loan products commonly considered to include amortizing fixed-rate mortgages, adjustable rate mortgages (ARM), hybrid ARMs, and balloon mortgages within the framework of the law;
  • Recommend best practice in valuation of real estate assets benchmarking best practices.
  • Since mortgage loan production normally consists of four phases: origination, processing, underwriting, and closing, STTA to provide best practice process of each including internal requirements as well as external compliance with applicable law.
  • Creation of Private Placement Memorandum (PPM ), an investment document used to raise capital for the Housing Finance Bank
  • Develop regulation recommendation document to support the investment that will be provided to regulatory authorities in order to lobby for improved financial products,
  • Recommend ideal banking operations
  • Identify training and capacity building requirements (including operations guidelines to launch a successful housing bank for a Greenfield housing bank in Ethiopia).
  • Build a manual of operation for the Bank.
  • Identify technology utilisation points including payment systems that reduce transaction costs.

    Deliverables

  • Detailed execution plan for delivery of comprehensive bank strategy document.
  • Strategy Document
    PPM
  • Operation Manual Handbook for the Bank

    Time Frame

    The timeline for the engagement of the consultant is 30 days. Detailed schedule of the engagement will be approved after signing of contract.

    Minimum Qualification

  • Have deep understanding of international mortgage banking business, operations; and capital raising.
  • Minimum of ten years of experience in international mortgage banking;
  • Minimum of five years’ experience in investment mobilization for banks.
  • At least four years of mortgage banking experience within Africa;
  • Minimum of five years’ experience in investment mobilization for banks.
  • At least three years of experience in African housing markets.

    Preferences

  • Track record Investment mobilisation for banks in emerging markets;
  • Experience in compliance, risk management of banks, preferred mortgage bank
  • Experience in creating internal or external regulation for mortgage Bank;

    Reporting

    The consultant will be directly reporting to the intervention manager and bank founders coordinator.Last date to apply is 12th March 2019.

    How to Apply:
    Interested individual should send their resume and application letter to the address epjobs@enterprisepartners.org.

    DAI Global International STTA - Innovative Mortgage Bank Jobs in Ethiopia

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