The subject matter of this research work examined the impact of Mortgage institutions on the National housing policy and Development in Nigeria. This study also examined the effect of mortgage finance and National Housing Fund on Nigerian Citizens towards acquiring their own houses. The work outlined and appraised critically the contributions of Federal Mortgage Bank of Nigeria and Primary Mortgage Institutions to Housing Development in Nigeria. The data for the research work were collected by the use of primary and secondary sources Primary sources of data collection embrace questionnaire, secondary sources on the other hand include data from review of related literatures, journals, and seminar papers. Relevant hypotheses were formulated and tested. The findings showed that Federal Mortgage Bank of Nigeria is a mortgage finance institution and has been assisting a considerable number of Nigerians with cheap housing loans for the past 46 years. The Federal Government promulgated the National Housing Fund Decree No 3 of 1992, primarily to address the constraint to the mobilization of long term funds for housing development and to ensure that Nigerians have access to housing loans at affordable rates of interest. Conclusively, if the system can press forward along these lines, and Banks and the NHF operating constraints are removed, the general picture of the mortgage industry and housing delivery will be fundamentally different, in few years to come.