Nara Bank of Los Angeles is letting U.S. customers pledge real estate in Korea as collateral for commercial and consumer loans.
Single-family homes, apartments, and commercial buildings or undeveloped land can be used, the subsidiary of the $1.1 billion-asset Nara Bancorp said late last month. Customers can use their own property or others', with the owners' permission.
The loans can be used for supplemental down payments on Nara loans to buy commercial real estate or businesses in the United States. They can also use the funds to repay existing lines of credit or other business loans made by Nara or for lines of credit of up to $100,000.
The $73.3 billion-asset Hana Bank in Seoul is working with Nara to facilitate the pledge of Korean real estate for collateral. Hana will also offer Nara customers property management services for real estate in Koreas and will share with Nara the fee income generated from the service.
Nara, which caters to Korean-Americans, is a subsidiary of the $1.1 billion-asset Nara Bancorp.
