Home Owner Mortgage Enhancement Programme

The Hong Kong Mortgage Corporation Limited (HKMC) announced today (3 July) that the following banks have signed a Letter of Intent to join the Home Owner Mortgage Enhancement (HOME) Programme:

American Express Bank

Asia Commercial Bank

Bank of China (Hong Kong)

Bank of Communications

The Bank of East Asia

Chekiang First Bank

Citibank

CITIC Ka Wah Bank

Dah Sing Bank

Dao Heng Bank

DBS Kwong On Bank

Fortis Bank Asia HK

GE Capital (Hong Kong) Limited

Hang Seng Bank

The Hongkong & Shanghai Banking Corporation

The Hongkong Chinese Bank

Industrial and Commercial Bank of China (Asia)

International Bank of Asia

Liu Chong Hing Bank

Nanyang Commercial Bank

ORIX Asia Limited

Overseas Trust Bank

Shanghai Commercial Bank

Standard Chartered Bank

Wing Hang Bank

Wing Lung Bank

The HOME Programme is a new mortgage insurance programme that aims to reduce the financial burden of homeowners in negative equity and to provide an effective tool for banks to reduce the credit risk of mortgage loans with current LTV ratio above 100%. The Programme provides insurance to cover a bank’s credit exposure above 90% and up to 140% of the current value of the property at the time of refinancing.

Preparation for the launch of the Programme is at an advanced stage. The HKMC is conducting a series of briefing and training sessions for the banks to help them familiarize with the eligibility criteria and the related application and claim settlement procedures. The legal documents are being finalised for signing with the banks and the reinsurers prior to the formal launch of the HOME Programme in mid-July 2002.

Mr Peter Pang, Chief Executive Officer of the HKMC said, "we are delighted with the encouraging response of the banks in joining the HOME Programme. The signing of the Letters of Intent will pave the way for banks to launch promotional campaigns for their HOME products."

The Hong Kong Mortgage Corporation Limited
3 July 2002