Nearly 10 banks, mostly in the public sector, are likely to pick up stake in the proposed Central Electronic Registry, a company to be co-promoted by the National Housing Bank (NHB), to keep a track of mortgages taking place in the home loan market.
The registry will help check frauds by depositing multiple documents of title relating to the same property.
“We are in the process of setting up the Central Electronic Registry. About ten banks are likely to pick up stake in the venture. The government had already committed Rs 25 crore for the purpose in the budget,” said NHB Chairman and Managing Director S Sridhar on the sidelines of the “Ficci Banking Conclave” on Thursday.
He also heads the working group set up by the Indian Banks Association in January 2009 for setting up the registry.
This apart, NHB is also in the process of setting up a mortgage guarantee company, which will provide credit guarantees to housing finance companies and commercial banks on behalf of clients seeking housing loans. The company is likely to be set up in the next two months, said Sridhar.
“There would be about three partners in the company, including a foreign firm, though NHB would be the single largest stakeholder of the mortgage guarantee company,” he said.
NHB is also spearheading the project to set up valuation standards for real estate by banks and financial institutions, and a draft on it is likely to be released in the next one month.