Hud Drawing Agreement with South Korean Housing Financing Office
The MOU comes in the midst of rates that President Donald Trump recently imposed on South Korean goods, including 25% in vehicles and 25% on steel and aluminum imports. Zuid -Korea negotiates with the US to look for exemptions or lower rates.
“This partnership reflects the non -repellent dedication of HUD to expand strong, affordable housing options for the American people,” said HUD secretary Scott Turner in prepared comments.
“Working strategically with our South Korean allies, we are expanding the global understanding of American home financing, while increasing capital flows in the United States, strengthening our domestic capital markets and unlocking strategies to benefit the American borrowers. This agreement indicates that it is ready to do business in President Trump again” “
According to Ginnie Mae’s May 2025 Global Markets Analysis ReportSouth Korea held around $ 35.46 billion in the American mortgage-supported effects (MBS) from 1 March, somewhat from the previous three-quarters.
South Korea also owns around $ 122 billion American treasury effects. It is in eighth place in all countries for interests of agency bonds and 17th for Treasury Securities.
This is the first time that KHFC is owned by the Bank of Korea And the government – has signed this kind of agreement with HUD, which administration officers call a signal that America is ‘open to business again’.
Joe Gormley-Die Ginnie Mae leads in the absence of a full-time, Senate-Voorbeelde President -Hei last month that there is a robust global market for Ginnie Mae Securities. He said that despite the Trade Wars he did not see a pullback from global investors.
According to the company’s analysis, Japan, China and Taiwan owned around 48% of all debts of the foreign agency from December 2024.
But China in particular has been selling its agency holdings since 2023. Between December 2023 and December 2024, China sold $ 51.5 billion to the MBS Agency and another $ 11.8 billion in the first quarter of 2025.
Canada and Ireland also throw around $ 10 billion in Agency MBS in the first quarter, although Japan, Taiwan, Luxembourg and the British Virgin Islands have helped these losses.
Ginnie Mae is aimed at looking at ways to introduce more private capital in his ecosystem. It is important that the company looks at switching from a monthly liquidation file to a daily file, Gormley said last month.
