A framework for the securitization of housing loans should be created before Government Housing Loan Corp. is privatized, the head of an advisory panel to the land minister proposed Tuesday.
In his written report submitted to Land, Infrastructure and Transport Minister Chikage Ogi, Tatsuo Hatta, a University of Tokyo professor, stressed the importance of social roles that the corporation has played so far.
The proposed measure is intended to promote a stable supply of housing loans on a long-term basis by diffusing the risk housing loan holders face from interest rate fluctuations, ministry officials said.