Page 392 - 2019 6th AFIS & ASMMA
P. 392
Session III
So, the number of new borrowers became 5,000 in 2012 and exceeded Related to our business, I'd like to give some interesting numbers.
10,000 in 2016. And since then, more than 10,000 have subscribed every The elderly on average appears to obtain the reverse mortgage loan at
year. So as of now, we are providing reverse mortgages to roughly 56,000 the age of 72, and home prices at the time of borrowing is on average
seniors. Also in 2007, we supplied 550 million dollars of credit guarantee $260,000, while the average monthly on your pension payment is about
for the elderly, but it became six billion dollars in 2012, increasing more $900. Broken by residence type, apartments take up as much as 84%, and
than 10 times in five years. And it stood at around 10 billion dollars since originally 70% of the borrowers are concentrated in Seoul metropolitan
2016. So currently, it stands at around 10 billion dollars annually. Finally, area. By size, 80% of the houses are 85 square meters. It's a small house.
with borrowers growing each year, the amount of pension, which was So in conclusion, since its launch, the reverse mortgage has become a
only four million dollars in 2007, exceeded 200 million dollars in 2012, core business for Korea Housing Finance Corporation, and as reverse
and 800 million dollars last year. So to sum up, since we launched this mortgages became a kind of a necessity for ordinary seniors in Korea
program in 2007, 72 trillion dollars of credit guarantees were supplied to now, we strive to devise more ways to provide more seniors with an
the 60,000 elderly, and as much as a 3.7 billion dollars of cash payments access to our fund and our products. We will also continue to make an
were made. effort to secure the safety and soundness of our businesses.
This is all I wanted to say. To answer the question of why the government
doesn’t directly supply reverse mortgages to customers instead of banks.
Actually we, the Korea Housing Finance Corporation, on behalf of the
government, do supply directly to the consumers, because we do almost
everything from loan screening, counseling of the consumers to evaluation.
We do everything. Even the interest rate is determined by us, Korea Housing
394 2019 6th AFIS & ASMMA Annual Meeting 395
