This report does not constitute a rating action. Overview Key strengths Key risks Japan's only public finance agency specialized in residential mortgage financing Susceptibility to government policy Integral links with the government Declining share of the housing loan market Strong capitalization More relaxed underwriting standards than private lenders, reflecting its policy role Japan Housing Finance Agency (JHF) is the only government-related entity (GRE) in Japan that supports provision of long-term fixed-rate housing loans mainly through securitization. JHF currently limits provision of direct loans to those that are difficult for private financial institutions to extend and are politically important. In addition, JHF promotes national policies, such as disaster recovery and prolonging the life of homes, through housing loans. Furthermore, the agency
