주거용 모기지 상품리스크와 금융소비자 보호

Abstract

This study aims to assess characteristics of residential mortgage loans in Korea via international comparison, particularly with regard to risk-sharing arrangement among market participants. Based on the comparative analysis, several policy recommendations are also made. As to key findings, the paper elaborates three issues. First, the non-amortizing three-year maturity loans that still take a significant portion of the mortgage stock share some similarities with the subprime mortgage loans traded in the U.S. at the peak of the credit cycle, which makes the mortgage finance system in Korea vulnerable to economic downturn driven by home price decline and interest rate hike. Second, in the Korean mortgage market, the interest rate risk borne by borrowers is more burdensome compared to other countries, which requires several consumer protection mechanisms including interest rate cap, abolition of prepayment penalty on adjustable-rate mortgages, and hybrid loans with reasonably long fixed-rate periods (e.g., 5-10 years) and long maturity. Finally, for the purpose of further development of stable mortgage market that can serve more underserved households, three policy recommendations are made: that is, developing a prime mortgage market suited to Korea, requiring capital rules differentiated by degree of mortgage product risk, and enhancing consumer training on mortgage product risk.