The total volume of KHFC mortgages surpassed 1 trillion won in only two months since they were offered on March 25th. KHFC is, therefore, planning to issue MBS on a monthly basis and provide long-term bonds to the domestic bond market on a regular basis. The first issuance of MBS is slated for June 15th and will total 500 billion won. KHFC is will likely include more financial institutions in its mortgage origination network in July and August. The fact that the volume of long-term fixed-rate mortgage origination surpassed 1 trillion won within two months has important implications for the economy. 1) KHFC can meet the potential demand for long-term mortgages, which private sector financial institutions have failed to meet due to maturity mismatches and interest rate risk. 2) KHFC can put the financial system on a more stable footing by offering long-term housing finance and helping to meet the demand for long term bonds by putting in place the system for providing MBS with mid- and long-term maturities. 3) In spite of the recent slow down in the real estate market, KHFC can do much to stabilize the housing market by creating new demand for homes. 4) The fact that mortgages are used mostly by actual homebuyers who are in their early forties and late thirties indicates that support can indeed be provided to raise the homeownership rate of low- and mid-income families. (Main characteristics of KHFC mortgage users) - Average age : 38 - Average loan balance : 72 million won - Average price of house purchased : 130 million won - Purposes of mortgages: new origination 72%, refinancing 28% - Size of house: 85 m(32 pyong) and smaller: 80.7 % The mortgages are offered at the same terms at nine institutions: Kookmin Bank, Kiup Bank, Nonghyup Bank, Korea Exchange Bank, Woori Bank, Korea First Bank, Hana Bank, Dae-Han Life Insurance, and Samsung Life Insurance