In June 2013 the Government of Mongolia jointly with the Bank of Mongolia [BOM] agreed to support the development of market-driven sustainable mortgage financing mechanism in response to the rapidly growing urbanization of Ulaanbaatar city and rural provincial centres in the court side. Mongolian Mortgage Corporation Llc.[MIK HFC], the Housing Finance Company established in 2006 for the development of the Secondary Mortgage Market was selected as the strategic entity to implement the Affordable Housing Mortgage Program. presently ongoing Affordable Housing Mortgage Program [Program] is designed as a combination of unconventional short term liquidity injection of BOM to eligible commercial banks followed by a structured finance solution through the inaugural issuance of a private label Residential Mortgage Backed Security ad mistered by the Mongolian Mortgage Corporation. The initiative of BOM to facilitate the growth of low and middle-income income housing mortgages was commenced by a disbursement of a below the market rate short-term loan as a seed liquidity to commercial banks to finance the origination and underwriting of residential mortgages to low and middle-income groups of Mongolian citizens at an affordable interest rate of 8% p.a. These mortgage loans provided relief of the middle and low class households’ financial burden by refinancing the existing high interest rate mortgage loans attributed to the high level of inflation rates imminent in the emerging economy of Mongolia.