Mortgages to be originated by all banks in Korea - loan origination network to be increased from nine to 21 financial institutions In an effort to improve availability of mortgages for home buying or refinancing, KHFC will expand the network of participating lenders form nine to 21 financial institutions on August 10th. On August 6, KHFC will sign an securitization commitment program with 12 newly designated participating lenders at the grand ballroom at the Seoul Hilton Hotel Newly designated lenders -Four commercial banks: Shinhan Bank, Chohung Bank, KorAm Bank, Suhyup -Six commercial banks headquartered in other than Seoul area: Kyongnam Bank, Kwangju Bank, Daegu Bank, Pusan Bank, Jeonbuk Bank, Jeju Bank. -Two non-life insurance companies: Samsung Fire Insurance, LG Fire Insurance All commercial banks (11), local banks (six), life insurance companies (two) and non-life insurance companies (two) will originate KHFC mortgage. The total branch network of participating lenders where borrowers may take out mortgages has increased from 6, 700 to 8,700 branches, increasing access to mortgages for borrowers residing in areas other than Seoul. The new network has important features -Shinhan Bank, Chohung Bank, KorAm Bank, Suhyup Bank, which have been originating their own mortgages, and are now included in the participating lender network. -In spite of lower loan origination due to the weak demand for homes and the low housing prices, commercial banks headquartered in areas other than Seoul were included in the network of participating lenders to promote the economy more widely and provide housing finance throughout the entire country. -Two life insurance companies and two non-life insurance companies will originate mortgages. - Lotte Capital, a lending-only institution, was temporarily designated but later excluded from the network since it withdrew its intent to join the lender network in the process of working-level meetings. Borrowers will be able to receive better service since they can take out KHFC mortgages at their primary banks. Lending institutions can retain their core customers and earn service fee income on a long-term basis through origination of long-term mortgages, which they would normally not be able to offer due to lack of risk management expertise. The expanded lender institution network will help KHFC promote homeownership nationwide and stabilize the housing market. The general shift to long-term mortgages and increased MBS issuance will also help stabilize the financial market.