MBS (securitisation) - Korea

1	Funding /risk transfer / both	Funding: Domestic When cash flow mismatches, call options are exercised to transfer the risk to investors.
2	Eligible assets	- Mortgage loan is secured by a valid, enforceable, first ranking and fully perfected mortgage - The real property securing the mortgage loan is a private residential property located in Korea - LTV(Loan to Value Ratio) of the mortgage loan is not more than 70% using the current principal amount outstanding of the mortgage loan - The amounts payable in respect of the mortgage loan are payable in KRW only - Etc.
3	Brief description of structure for each	When KHFC purchases loans from originating banks, the assets are transferred on a non-recourse basis (except for cases involving a breach of representations and warranties). This ensures the transaction meets the legal requirements for a 'true sale.'
4	Fees / pricing structure	Upfront fee for: Arrangers, legal counsels, Asset monitor, Paying agent, Credit rating agencies Annual fee for: Asset monitor, paying agent, Credit rating agencies,
5	Servicing	The issuer(HF) is in charge of loan administration, collateral management, cash flow management and monthly report for investors.
6	Risk sharing (if appropriate)
7	Other Comments	/