Overview Overview Structure of MBS Securitization Benefits of MBS Issuance Structure About MBS MBS (Mortgage-Backed Security) is a type of beneficiary securities issued with the mortgage loans1) as underlying assets. Financial institutions, such as banks, originate mortgage loans for home buyers and transfer the loans to KHFC for securitization. Financial institutions, such as banks, transfer the mortgage loans to KHFC. KHFC, after establishing a trust with itself as a trustee of the loans, issues beneficiary securities (MBS) with the loans as underlying assets. MBS Issuance Structure By issuing MBS, KHFC acts as an intermediary between investors in the capital market and borrowers in the housing finance market. This can benefit housing finance borrowers, financial institutions and investors. You can find the details of the benefits each participant receives on the ‘Benefit’ tab. 1) Mortgage loans are a bond that bestows the lenders(financial institutions) with the right to collect debt payment from the borrowers in the future with houses as collateral.