"KHFC selects MBS/MBB issuance organizers and other relevant institutions for 2014"

The Korea Housing Finance Corporation (KHFC, CEO Seo Jong-dae) announced on the 16th that it selected a new group of financial institutions who will oversee the issuance of mortgage-backed securities (MBS) and mortgage-backed bonds (MBB) this year, together with other relevant organizations such as legal advisors, asset due diligence providers and credit rating agencies.

Selected as the MBS/MBB issuance organizers were 15 securities firms including Daishin, Daewoo, Tongyang, Meritz and Mirae Asset. Each time KHFC issues MBSs and MBBs, two to five of these institutions will be chosen as organizers depending on the scale of the issuance.

At the same time, KHFC also chose five law firms―Kim & Chang, Baeksang, Sojong, Sejong, and Jipyong & Jisung―which will provide legal advice on MBS/MBB issuance structure and various contracts. The five accounting firms of Daejoo, Samduk, Samjong KPMG, Anse, and Deloitte Anjin were selected as the providers of due diligence on assets.

In addition, the three credit rating agencies of NICE Investors Service, Korea Ratings, and Korea Investors Service agreed to take turns for the credit rating of MBSs and MBBs.

Having issued MBSs and MBBs worth 22.7 trillion won last year, KHFC will make continued efforts in 2014 to securitize mortgage loans, helping improve the quality and structure of its mortgage loans and contributing to the development of the long-term bond market.