Benefits of MBB Overview Structure of MBB Securitization Benefits of MBB MBB Benefits MBB benefits investors and housing fund borrowers, as well as the financial companies involved in MBB. However, the biggest advantage of the MBB system is that it gives great benefits to the general public. The funds raised through issuance of MBB are used again for the loans for home buyers, the loans for tenants, the loans for middle payment and construction of rental apartments, contributing to housing stability and property formation of the general public. Benefits for Home Buyers It becomes easier to borrow housing funds. As the financial resources of financial institutions increase, home buyers find it easier to borrow housing funds. In particular, the loan to value grows up to 70%, reducing the burden of self-funding when buying a house. Reduced burden of repaying the principal and interest MBB reduces the burden of borrower’s repayment of principal and interest through smooth supply of long-term, low-interest and fixed-rate load funds, and enables designing of stable repayment schedule. What are the benefits of MBB(CB) to lenders(financial institutions) who originate mortgage loans? By transferring mortgage loans to KHFC through securitization, financial institutions can eliminate the credit risk and interest risk associated with the loans. Other benefits include the improvement of BIS ratio (the min. mandatory BIS capital adequacy ratio of 8%), expansion of customer base, and diversification of profit portfolio. . BIS Ratio Improvement By transferring the mortgage loans to KHFC through securitization, lenders who originate mortgage loans(financial institutions) can improve their BIS ratio. Expansion of customer base As LTV of up to 70% applies to loans for KHFC securitization, financial institutions can secure long-term customers requiring high loan limit. Diversification of profit structure Financial institutions can diversify their profit portfolio with servicing fees for the securitization. What are the advantages of MBB(CB) to investors? MBB(CB) are a safe investment vehicle with AAA credit rating and KHFC payment guarantee, backed with mortgage collateral.. MBB(CB) are a safe investment instrument. With AAA credit rating obtained from domestic or global credit rating agencies, MBB(CB) payment is guaranteed by KHFC, backed with mortgage collateral. MBB(CB) is even saver as the government indemnifies against settlement loss. MBB has high liquidity. It is listed on the Korea Exchange immediately after issuance, and you can easily trade and liquidate it.