HF Eased the Debt Burden this Year through Financial Reform
- Date 2014-12-11
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HF Eased the Debt Burden this Year through Financial Reform
- It reduced the financial burden and increased convenience by launching Akkim e-Bogeumjari Loan and other products -
Korea Housing Finance Corporation (HF, President Kim Jae-Chun) announced on the 11th that as part of its
financial reform efforts, it had launched the Akkim e-Bogeumjari Loan* last March and had offered around
500 billion won under the loan through this November, thus easing about 500 million won worth of financial
burden.
* Akkim e-Bogeumjari Loan is a long-term fixed-rate mortgage loan offered by HF. Its interest rate is 0.1% point lower than
that of the regular Bogeumjari Loan, and its loan agreement and collateral securitization can be completed online.
HF also made another change to its Bogeumjari Loan program last April. In accordance with the change, when
a Bogeumjari mortgagor dies and his or her successor repays the mortgage loan in full early, the loan is exempt
from early repayment fees.
Furthermore, HF took a series of other measures to ease regulations last September, expanding the eligibility for
its JooTaekYeonKeum program to those owning a second home temporarily and those owning two or more homes
whose combined value is 900 million won or less and providing the reverse mortgage product through not only
commercial banks but also insurers. In addition, HF allows its reverse mortgage clients to have the value of their
property assessed not only by the Korea Appraisal Board but also by private appraisal services designated by HF.
In addition, HF has made a change in its loan protection measures, banning existing measures such as the provisiona
l seizure of the property of the spouse of a debtor who uses the HF guarantee for a jeonse loan, unless there is a
suspicion of the debtor draining wealth, etc.
A HF official said, “We will continue to push forward with reform measures down the road, improving unreasonable
business practices for our clients, lowering our start-up fees for JooTaekYeonKeum loans, and changing the method
of JooTaekYeonKeum payments to offer senior Koreans various financial choices.”