The U.S. Department of Housing and Urban Development (HUD) and Ginnie Mae signed a memorandum of understanding (MOU) with the Korea Housing Finance Corp. (KHFC) to strengthen international cooperation in housing finance. The MOU underscores a shared commitment to expanding access to affordable housing, cultivating innovation and supporting residential development in both the U.S. and South Korea.
“This partnership reflects HUD’s unwavering commitment to expanding strong, affordable housing opportunities for the American people,” HUD Secretary Scott Turner said. “Working strategically with our South Korean allies, we are expanding the global understanding of American housing finance, while increasing capital flows in the United States, strengthening our domestic capital markets, and unlocking strategies to benefit American borrowers. This agreement signals that … our allies are ready and willing to do business in America again.”
The KHFC is a state-owned institution with a finance management committee primarily composed of government appointees. It has a mandate to support housing markets and economic growth, as well as implement housing policy and capital market development in South Korea.
The MOU lists the intended areas of joint research cooperation, including innovative financial instruments, mortgage-backed securities and funding approaches, housing market analysis, comparative analysis and strategic initiatives.
The intended methods of cooperation include policy exchange and expertise sharing, joint events, collaborative projects that “support the sharing of housing finance and market-related expertise,” and emerging areas of cooperation such as “fintech integration and digital mortgage platforms,” the MOU stated.
The MOU strengthens the relationship between the U.S. housing finance system and Korean institutional investors, who have demonstrated confidence in U.S. fixed-income products as a secure, long-term investment. Current holdings include approximately $37 billion in agency mortgage-backed securities and debt, and $122 billion in U.S. Treasury securities, according to the latest data from the Treasury International Capital system.
“Formalizing our partnership with KHFC through this MOU is a meaningful step in addressing housing challenges that extend across borders,” Ginnie Mae’s Executive Vice President Joseph Gormley said. “Korean institutions continue to play a significant role in our capital markets, and we look forward to working together to advance a shared understanding of global capital markets and to ensure the strength of our mortgage-backed securities.”
KHFC plays a central role in promoting long-term mortgage lending, particularly for low- and middle-income families. South Korea is a top global investor in U.S. Government securities — eighth in holdings of agency bonds and 17th in U.S. Treasury securities.
“It is a great privilege to sign this MOU with Ginnie Mae in the presence of the Secretary of HUD,” KHFC President and CEO Kyung Hwan Kim said. “This partnership marks an important step toward closer collaboration between Korea and the United States in the field of housing finance. By sharing knowledge and best practices, we hope to strengthen the resilience and inclusiveness of our respective housing finance systems. KHFC remains committed to building a more financially sustainable future for all.”