The title of this research work is mortgage baking and housing policy in Nigeria. The objectives of this study are to find out how housing loans given by the mortgage banks affect the availability of loans by the masses. How effective is the impact of the loan (NHF) given by the PMI on provision of low-cost housing. Both primary and secondary source of data collection were used primary data were obtained through both conduct of oral interview and administration of well-structured sets of questionnaire to member of staff of the company of study. The federal mortgage bank has proved to be of tremendous benefits to the people at the grassroots in terms of customer relation, services rendered, customer friendly packages and other auxiliary services. It was recommended that the PMI needs to improve on their awareness mission so as to make more people (especially the common man) know more and benefit from the services they render. Lastly, as the economy in developing mortgage banking system should be reformed to meet and overcome the modern day challenges. The study is therefore an investigation on the structure and challenges confronting housing finance efforts of primary mortgage institutions. The research objectives includes the examination of housing delivery policies and finance in Nigeria. The study also examines the structure of mortgage banking in Nigeria. The problems and challenges confronting the operations of mortgage banks. The methodology employed by the research include the collection of primary and secondary data. Data obtained were analyzed through simple frequency distribution table. existing department in mortgage banks are corporate/administration, human resources operations, legal marketing, and mortgage services and products of the PMIs are National Housing Fund(NHF).major challenges confronting the operations of the PMIs are NHF policy, structure of PMIs, the national economic climate, high cost of building materials, and public apathy, difficulty of access to land and land documentation constraints, poor collaterals, high interest rates and competitive finance market. The study suggest that the NHF policy should be reviewed and that government should provide incentives such as tax rebates for building materials manufactures, encourage the re-training of labour to improve their skills and speed. The Nigerian land law should be reviewed to make access to land less cumbersome while cheap funding sources should be provided specifically for housing finance.