HF offers relief support for its customers in the wildfire devastated areas

- Three years of principal deferment & full exemption of prepayment fees for Bogeumjari and conforming loan borrowers

- Additional support for customers of Jeonse & monthly payment guarantees at the time of new rent contracts

- Temporarily continues to give out monthly payment for home pension subscribers whose collateral houses were demolished by the massive fire 

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) announced on 6 April that the company devised support programs for its customers of Bogeumjari loans, housing guarantee products and home pension, etc. who had been affected by the recent wildfire on the east coast that devastated the areas. The programs are designed by each product type to help the victims of the wildfire in the areas. 

▲ Principal repayment deferral and full exemption of prepayment fees for Bogeumjari and conforming loan borrowers 

Where the houses of Bogeumjari and conforming loan borrowers or of lineal ascendants or descendants of the borrowers were hit by the fire, they can request for deferral of principal repayment within one year from the disaster date and only have to pay the interest for three years. In addition, where borrowers whose assets (houses, paddies or farms) were damaged by the massive fire make prepayment, they are exempted from the prepayment fees.

▲ Additional support for Jeonse and Monthly Rent Guarantee customers when entering new rent contracts 

Where HF Jeonse and Monthly Rent Guarantee customers take out a new lease as their previous houses struck by the disaster, HF provides additional Jeonse and monthly rent guarantees. In  addition, where housing guarantee customers cannot make principal or interest repayment on schedule, HF temporarily extends the grace period for foreclosure or seizures, as well as reducing deferral fees and additional guarantee fees. Moreover, if customers whose houses were affected by the fire take out Housing Construction Guarantees or Mortgage Credit Guarantee (MCG), HF ensures no applications would be rejected on the grounds of credit evaluation results. 

 ※ Housing Construction Guarantees : Guarantees used to build houses or to preserve already-paid construction fund.

  Mortgage Credit Guarantee (MCG) : Guarantees used by customers who take out mortgage loans from banks to the full LTV amount, without reduction for minimum lease deposit. 

▲ HF continues to give out monthly payment for home pension subscribers, even when their collateral houses were demolished by the wildfire. 

When collateral houses of home pension have been severely destroyed or demolished by the wildfire, HF temporarily extends the monthly payment as usual. In addition, if the subscribers decide to terminate the pension contract, HF makes partial repayment of initial guarantee premium, reflecting the pension use period.

▲ HF offers further debt-relief for the bad debt borrowers, up to 10%p of the principal.  

Where delinquent borrowers whose debt had to be repaid by HF on subrogation fell into victims of the wildfire, HF offers further debt-relief for them, up to 10%p of the principal (within the max relief rate of 70%) through the bad debt restructuring program. Furthermore, if the borrowers have already been making installment repayment, the repayment can be deferred up to two years. 

※ Bad Debt: Debts excluded from assets on the account due to low recollection probability, which does not mean the forfeit of the right to the debt collection  

HF commented, “Those eligible for the relief program can submit ‘Proof of Disaster-Stricken’ documents issued by the local government to be admitted. For more information, please refer to the HF website or call HF Call-Center(1688-8114).”

In the meantime, HF collected total KRW 30 million through voluntary charity funding and donated to the Community Chest of Korea on 11 March, to support prompt recovery of the affected region.