Q Q. MBS Tranches

A Currently, KHFC MBS consist of senior MBS with 8 tranches per maturity, as the followings; 1-year maturity MBS(1-1), 2-year maturity MBS(1-2), 3-year maturity MBS(1-3), 5-year maturity MBS (1-4), 7-year maturity MBS (1-5), 10-year maturity MBS(1-6), 15-year maturity MBS(1-7), and 20-year maturity MBS (1-8). In case of MBS-SWAP issuance, however, there is one tranche(1-1).

Q Q. How stated maturities vary from actual maturities?

A In case of callable beneficiary certificates, actual payments are made before the stated maturities. Execution of call option is decided considering surplus fund and other factors. Subsequently, actual maturities may differ for each security, which makes it hard to precisely estimate an actual maturity date of a security.

Q Q: MBS with the Relief Conversion Loans(Anshimjeonhwan Loan) as underlying assets

A From May to July, 2015, KHFC issued 8 rounds of MBS with the Relief Conversion Loans(Anshimjeonhwan Loan) as underlying assets. In each round, the issuance volume amounted to about KRW 3.4 to 4 trillion. As same with previous MBS, each round consists of 8 tranches of senior MBS and 1 tranche of junior MBS. MBS from KHFCMB2015S-09 to KHFCMB2015S-16 are the ones of which underlying assets are composed of Relief Conversion loans only.

Q Q. What is the delinquency rate of underlying assets?

A A. Delinquency refers to overdue payment of P&I, of which rate is calculated by dividing the delinquent loan balance and the total overdue P&I amount with the loan balance of the month end.
Delinquency rate 1 = Total overdue P&I Loan balance divided by the loan balance of the month end.
Delinquency rate 2 = Loan balance overdue longer than a month divided by the loan balance of the month end.

Q Q. What is the difference between stated maturities and expected maturities by tranche?

A Callable beneficiary certificates allow prepayment when there is surplus fund in the trust before the stated maturities of the securities. Given this call option right, KHFC provides various related information to investors, including expected maturities of MBS per tranche.

Q When you forget your ID

A You have to sign up with another ID because we don’t have personal information except e-mail address. when forgetting your Id, you have to sign up again.

Q What is delinquency rate of underlying asset?

A Delinquency rate 1 = Total arrears of P&I Loan balance at the end of the month Delinquency rate 2 = A delinquent loan balance of 1 month or more Loan balance at the end of the month

Q Function of receiving e-mail

A It is function that we provide to user of K-MBS. when posting new information, we send to user of K-MBS e-mail to let you know that there is a new posting. [How to use function of receiving e-mail] 1) Please login. if you don’t have ID, you need to sing up to receive e-mail. 2) You select e-mail that you want to receive on the menu ‘My page’, and then click on the ‘change’ button. 3) If you don’t want to receive e-mail, you check the ‘not receiving’ button. (Attention) It is service that we help you use conveniently the K-MBS. You can’t receive the e-mail because of communication problems or error, so you need to always check the K-MBS.

Q Where does details about underlying asset disclose?

A In the Monthly files > “Detail Statistics” menu on the K-MBS, you can download details about underlying asset and use conveniently this info.

Q What prepayment rate is ?

A Prepayment rate = Amount of loan repaid early at the month Loan balance at the end of the last month