CHAPTER ONE INTRODUCTION 1.1            BACKGROUND OF STUDY A criteria component of basic approach to economic development is shelter, next to food, shelter is consider to be the next most important basic need. Housing however transcends simple shelter include utilities, and community services like electricity, water supply and good access road, sewage and refuge disposal system and employment. Housing perhaps constitute the most services problem facing large economic warfare term. It is substantial social benefit sanitation facilities and access to health and educational services. In the early 50th the need to finance housing for Nigeria remained so small. In 1970, the buoyancy of Nigeria economic and industrial development acceleration urbanization, housing shortage in the quantitative and qualitative even spatial distribution industrial development acceleration urbanization housing shortage in the quantitative and qualitative form occurred as a result of unplanned and control of urbanization. The banks performs these functions;a.                 The provision of long term credit facilities to mortgage institution in the country. Such rat upon such term may be determined by the country board in accordance with the policies directed by the federal mortgage facilities to individual desiring to acquire house of their own. b.                 The encouragement and promotion of the development of mortgage bank institution at state and national level. c.                  The supervision and control of the facilities of the mortgage institution. In Nigeria accordance with such directive as may be given from time by the federal government of Nigeria. d.                 Provision of long term credit facilities directed to Nigeria individual and such term as may be determine by the bank board directors given by the federal government. 1.2            STATEMENT OF THE PROBLEM The federal mortgage bank of Nigeria as a mortgage institution is a formal source of finance for housing program for individual, companies and the government. the problems associated with mortgage institution are as follows; a.                 How the risk granting credit in credit facilities affected the operation of mortgage institution? b.                 How have the policy of gratuity credit facilities in mortgage institution affected the credit facilities in the institution? c.                  How are the problem which are likely to arise with the increase in the demand for loan advanced to resolved for a letter fulfillment of it objectives? d.                 For how long must a customer operator a saving account before being eligible to apply for mortgage loan? e.                  How effective are the bank credit policies? 1.3            RESEARCH QUESTIONS To enhance the progress and development of various states in the federation more effort is required towards achieving the increasing need for housing finance. This implies that the federal mortgage bank of Nigeria which was established by the federal government mainly to produce housing finance to adopt effective credit policies in order to meet increase in demand for loans and help answer the following questions;i.                   How effective are the banks credit control procedure in respect of huge demand for credit facilities? ii.                 What are the problems encountered by bank in ensuring its credit control facilities for granting loan and the bank excessive and short coming in fulfilling its function? 1.4            RESEARCH HYPOTHESISHypothesis 1 Ho:     There is no significant relationship between credit mortgage institutions on which level of credit facilities. H1:     There is a significant relationship between credit mortgage institutions on which level of credit facilities. Hypothesis 2Ho:     There is no significant relationship between credit control in mortgage institution and management of the bank. H1:     There is a significant relationship between credit control in mortgage institution and management of the bank. 1.5            OBJECTIVES OF THE STUDY The objective of the study is to; a.                 Ascertain the significant relationship with the level of the credit facilities and credit control mortgage institution. b.                 Probe into the credit control policies of the bank, the procedure for the granting of loans and the bank excesses and short coming fulfillment function. 1.6            SCOPE OF THE STUDY This study is limited to the federal mortgage bank of Nigeria because it is the apex mortgage institution in Nigeria and data required for the study will be sufficiently gathered. Although the bank has its head office in Lagos with mainly other branches throughout, the reference is made to the federal mortgage bank of Nigeria, Benin City Branch Office. This study is mainly concerned with loans and advanced. This research work covers the banks activities from 1984. 1.7           SIGNIFICANCE OF THE STUDY The significance of this study is to develop the economy in so many ways such as community service by providing electricity, good access to disposal system, etc.. The federal mortgage bank of Nigeria (FMBN) was established under the name “building society it is empowered to approve individual mortgage loans”, people who want to build a house but no mortgage bank. The mortgage bank long term credit facilities to customers (creditors). This is why the study of credit control is important in encouraging the promotion of human, social and economy resources. 1.8            LIMITATIONS OF THE STUDY In the process of carrying out this research work, some limitation factors encountered are enumerated below; 1.                 Scarcity of material: This aspect of accountancy has received very little attention from scholars despite its long historical age. Consequently, there is a few literary publication available to student; the researchers was therefore limited to reviewing few literature which are mostly in origin, though relevant to the study. 2.                 Bureaucracy: Most banking industries are well known for maintaining utmost secrecy as regards their operations, more so, where it is a study that concerns their financial operation the researcher found it difficult to obtain material relating to the study (that is literature) and some bankers who have been very elusive and uncooperative. More so, the bureaucracy and protocol the research went through to obtain material and an appointment has been very discouraging. Apart from the above listed limitations witnessed by this researcher, is time constraint. This is a major limitation factor as the time between approval of the study and the deadline for submission was very short. The researcher relied heavily on the good will of the research supervisor because he understands my plight. Again, lack of sufficient funds to conduct an extensive study was another handicap.