HF Contributes to the Launch of Reverse Mortgages in the Philippines 

- HF pursues international exchange via video conference due to COVID-19

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on June 24, 2020, that it held a video conference with Malaysian national mortgage corporation Cagamas Berhad* on the introduction of a Malaysian reverse mortgage program**.

  * Established under the Central Bank of Malaysia in 1986, Cagamas Berhad is the Malaysian national mortgage corporation specialized in purchasing mortgage loans and issuing mortgage-backed securities.

 ** A reverse mortgage program under which older adults 55 years of age or older provide their owned home as collateral and receive monthly pension benefits for the rest of their life

Joined by the CEOs and working-level officers of the two corporations, the conference dealt with the following topics: ▲general characteristics of HF’s JooTaekYeonKeum (JTYK), ▲ the structure of the JTYK actuarial model and key assumptions, ▲ main types of risks and management, and ▲ matters of consultation with related bodies on the operations of the program.

This video conference was organized as Cagamas Berhad CEO Datuk Chung asked HF to share its knowledge and experience on the JTYK program and operations after signing an MOU with HF last April. The two institutions held numerous rounds of working-level discussions on the technical aspects of the Korean JTYK program, and due to the recent COVID-19 outbreak, they moved this round of discussions online.

Malaysia has recently been gearing up to introduce a reverse mortgage program in order to ensure a stable income flow for its elderly population. After another round of consultative meetings with HF scheduled in the second half of the year, the nation will confirm a final product model and unveil the nation’s first reverse mortgage product next year. 

HF CEO Lee Jung-Hwan said, “Our JTYK program was introduced to ensure the financial stability of Korean people in their post-retirement years, and now it has earned global attention. At the end of 2018, the Philippines benchmarked its first reverse mortgage program against our JTYK program. Building on our current consultations with Malaysia, we will continue to engage in international cooperation, sharing our housing finance models and experience with other Asian countries and thereby contributing to the development of the Asian housing finance markets.”

HF will continue its international cooperation efforts via this non-contact, online platform, which is a stable and efficient option even in view of the post-COVID-19 era.