WASHINGTON, D.C. — The U.S. Department of Housing and Urban Development (HUD), Government National Mortgage Association (Ginnie Mae), and the Korea Housing Finance Corporation (KHFC) have signed a memorandum of understanding (MOU) aimed at expanding global cooperation in housing finance.
The agreement sets a framework for enhanced collaboration between the United States and South Korea to expand access to affordable housing, foster innovation, and bolster residential development. The initiative highlights a commitment to addressing global housing challenges by promoting long-term, stable investments and facilitating cross-border capital flows.
“This partnership reflects HUD’s unwavering commitment to expanding strong, affordable housing opportunities for the American people,” said HUD Secretary Scott Turner. “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.”
South Korean institutional investors have been active participants in U.S. capital markets, currently holding $37 billion in Agency Mortgage-Backed Securities and Debt and $122 billion in U.S. Treasury securities, according to the Treasury International Capital system. The MOU aims to deepen this relationship by removing barriers to investment and encouraging the exchange of best practices between the two nations.
“Formalizing our partnership with KHFC through this MOU is a meaningful step in addressing housing challenges that extend across borders,” said Joseph Gormley, Principal Executive Vice President of Ginnie Mae. “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, a leader in promoting long-term mortgage lending for low- and middle-income families in South Korea, welcomed the agreement as a milestone in fostering resilient housing markets worldwide. “This partnership marks an important step toward closer collaboration between Korea and the United States in the field of housing finance,” said KHFC President and CEO Kyung Hwan Kim. “By sharing knowledge and best practices, we hope to strengthen the resilience and inclusiveness of our respective housing finance systems.”
The agreement highlights the enduring economic ties between the two nations and their shared commitment to addressing housing affordability and sustainability through cooperative efforts. The MOU establishes a foundation for future initiatives aimed at benefiting both countries’ housing markets and capital systems.
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