Request concerning Fiscal 2007 Housing Loan Corporation Budget Request

JBA annually submits requests to governmental organizations in conjunction with these organizations drafting their budget requests for the next fiscal year to be submitted to the Ministry of Finance at the end of August. The request concerning the Housing Loan Corporation (HLC) was finalized by the Board of Directors on June 20 and submitted to the HLC Governor and Minister of Land, Infrastructure and Transportation on June 21.

Specifically, JBA made two requests: (1) A revision of the agency commissions paid to banks by HLC so that they reflect market mechanisms, and (2) Improving the HLC's operations to support securitization of housing loans to heighten the convenience of customers and lighten the workload placed on financial institutions. As for the guaranty-type business, JBA asked that a scheme be introduced that uses beneficiary rights in trust to make the business more attractive.