The Mortgage Corporation of JAPAN,Limited (E32969) Stock Price

Japan Housing Loan is a specialized financial institution with Flat 35, offered by the Japan Housing Finance Agency, as its flagship product. The company was established in 2003 through investments by Sekisui House, Daiwa House Industry, and Hitachi Capital (now Mitsubishi HC Capital), and later Sekisui Chemical and Sumitomo Forestry also became capital participants. The company provides long-term fixed-rate housing loans and transfers the loan receivables it originates to the Japan Housing Finance Agency or trust banks, adopting a business model that minimizes credit risk and interest rate risk exposure.

The company's primary customers are homebuyers who purchased properties sold by partner housing companies that are investors. Revenue is primarily generated from origination fees on housing loans and servicing fees (loan administration fees) that continue to be collected after receivables are transferred. As of March 2025, the company manages approximately 2.331 trillion yen in housing loan receivables, which forms a stable revenue base.

The company offers a diverse range of products, including the "MCJ Flat" series of Flat 35 offerings, variable-rate "MCJ Variable Loans," "MCJ Mix Loans" that combine fixed and variable rates, and reverse mortgage loans for customers aged 50 and above. Notably, variable-rate products feature a maximum repayment period of 50 years and allow financing up to 100% of the property value, providing a broad product lineup that meets diverse customer needs.

Japan Housing Loan, a specialized housing finance institution centered on Flat 35 mortgages, operates under the core principle of "stably supplying high-quality and reliable housing loans" and serving as a "bridge to dreams" for customers' enriched residential lives. The company prioritizes differentiation strategies in partnership with housing builders, constructing a unique business model that supports housing sales promotion through IT-driven acceleration of loan screening speed, streamlined administrative procedures, and strengthened consulting capabilities.

The cornerstone of the company's differentiation strategy is its proactive commitment to innovative product development and technological advancement. In fiscal 2024, anticipating market shifts from the end of negative interest rate policy, the company launched new products including the "MCJ Mix Loan" and "Rate Conversion Option" to address transitional market needs. Through these proprietary products, the company captures diverse financing needs of homebuyers during the transition from variable-rate mortgages to Flat 35, supporting partner builders in securing competitive advantage.

In new market development, the company actively expands beyond traditional new construction mortgages into new segments such as renovation loans and reverse mortgages. Notably, the variable-rate "MCJ Variable Loan" features distinctive services including an "advance financing plan," differentiating the company from competing financial institutions. The company continues to challenge itself as an "innovator in business models," aiming to build long-term growth foundations.

Technological innovation and strengthened risk management are critical management priorities. With the introduction of MCJ Variable Loan, the company has reinforced credit risk management and mitigates interest rate risk by controlling execution rates based on funding costs amid market rate fluctuations following the end of negative interest rate policy. The company also strengthens information asset management including cybersecurity measures and establishes stable funding structures by balancing securitization, debt assignment, and financial institution borrowing, thereby securing sustainable growth foundations.