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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: piggington who wrote (31201)	4/25/2005 7:31:27 PM
From: Elroy Jetson	Respond to of 110194

The actual name of the Japanese government agency making below market loans is "Government Housing Loan Corp". Created in 1950 to carry out functions similar to Fannie Mae and Freddie Mac. After 1990 it became a mutant liquidity dispenser. The Japanese government has always been planning to limit its activity, but never does. Government Housing Loan Corp. nni.nikkei.co.jp The Government Housing Loan Corp., set up in 1950, is the only government-affiliated mortgage financial institution. The corporation extends long-term, fixed-rate and low-interest loans to people when they build or buy houses or condominiums. The institution, which borrows the majority of its funds from the government, has provided loans to a total of 18 million homeowners covering 30% of all housing constructed in the postwar era. The corporation's relatively easy lending policies have attracted many homebuyers, making it more popular than private institutions offering mortgages. Accounting for 38% of all new housing loans to individuals in fiscal 1999, the corporation has attracted criticism from private institutions, which claim the corporation, which receives more than 400 billion yen from the government's general account to cover interest payments on its borrowings, has an unfair advantage. Discussion on the possibility of privatizing the corporation has recently begun as part of the government's reform plan for special public corporations. The Land Ministry also plans to limit the loans the housing corporation can extend to homebuyers. .