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D.Gantugs: Accessible housing program is vital

Decline of Mortgage loan rate had positive effect on the citizens. As 5% mortgage loan program is beginning on Tuesday March, 2016 we have interviewed with the Mrs D.Gantugs CEO of Mongolian Mortgage Corporation (MIK).


MIK is trading its stock on Mongolian Stock Exchange and recently has become open company. What are the main changes in the company?

In the first place, the company must have good corporate governance as it is undertaking ‘program’ that has great expectation on society. Shareholders of MIK HFC LLC, carried out a decisive farsighted step in the company’s history. By the decision of the Shareholders, MIK HFC LLC’s Holding company became joint stock Company listed on the Mongolian stock exchange in December 2015.

What are the roles of MIK in Mortgage system?

Ever since its establishment in 2006 our company is working with the mission to develop the sustainable mortgage finance system, with international best practices. And to develop security market with the introduction of long term private company securitization structure.  

The joint program approved by the Parliament and Bank of Mongolia and made the agreement with banks to develop securities market by expanding mortgage loan market, introducing international best practice and finance scheme. Our company was elected in this program, made agreement to issue long term securities based on the international best standards.

It has not been long since first issuance of “Residential Mortgage Backed Securities” (RMBS) on the market (2013) which was dedicated to satisfy housing needs for citizens. We have not been recognized well in this over 2 years. However, as a result the low rate mortgage loans are providing the needs of many households. As of today, almost 61,000 households acquired apartments and increased their living condition with the benefit of low rate mortgage loan.

As of today (since 2013), under the international practice, the company has issued long term RMBS totaling MNT 2.35 trillion by 8 SPCs. At the same time RMBS’s are sold to Bank of Mongolia and other commercial banks, since beginning of the 2014, MIK HFC LLC accumulated and transferred payment (principal and interest) totaling MNT 288 billion to its bond owners.

In other words, the main aim of the MIK HFC LLC is to establish secondary housing finance market, long term security market; to decrease banks mortgage loan rate; to increase loan sufficiency and to satisfy the scheduled payments of bond owners.