Long-term, Fixed-rate Conforming Loans Expanded to Major Regional Banks

- Business agreements on conforming loans signed with Busan Bank, Daegu Bank, Kyongnam Bank, and Kwangju Bank

- Plan to make the loan available at all regional banks by the end of next year

The Korea Housing Finance Corporation (KHFC, CEO Seo Jong-dae) announced on September 19 that it signed business agreements with four regional banks - Busan Bank, Daegu Bank, Kyongnam Bank, and Kwangju Bank - to offer conforming loans. As a result, the four regional banks will handle fixed-rate conforming loans from September 2012, allowing customers outside the capital region to conveniently take out the loan.

※Conforming loans are long-term, fixed-rate mortgage loans offered using funds that KHFC finances to financial institutions by issuing mortgage-backed securities (MBS). By lowering the risk of a rise in interest rates and a fall in home prices, the loan has greater resilience to financial risks and stability in the housing financial market.

□ Agreements for conforming loans signed with Busan Bank, Daegu Bank, Kyongnam Bank, and Kwangju Bank - the first regional banks to sign the agreements

On September 19, KHFC signed business agreements on securitization with Busan Bank (CEO Seong Se-hwan), Daegu Bank (CEO Ha Chun-soo), Kyongnam Bank (CEO Park Young-been), and Kwangju Bank (CEO Song Ki-jin). With launch of the product by Kyongnam Bank in September, conforming loans will become fully available through the regional banks.

The agreement on conforming loans was signed with regional banks for the first time. When the regional banks handle conforming loans, customers who use these regional banks as their primary banks can take out conforming loans without having to change their primary banks.