Mortgage Service Japan Limited
7192・Standard Market・Other Financing Business
Business
Nihon Mortgage Service is a housing-industry-focused financial services group founded in 1996. The company consists of three segments: the company itself (Housing Finance Business), House-Gmen Co., Ltd. (Housing Defect Insurance Business), and Jutaku Academeia Co., Ltd. (Jutaku Academeia Business). Its main customers are small and medium-sized homebuilders (construction companies and builders) across Japan. Under a BtoBtoC business model, it offers a combination of housing loans including Flat 35, the legally mandated housing defect insurance, housing warranty services, and the housing business cloud system "Suketto Cloud." The company positions itself as the only housing finance services firm in Japan that covers the entire long housing life cycle, from construction through post-delivery maintenance and the resale market.
Business Model
A BtoBtoC-type model that leverages housing businesses as sales channels. In the Housing Finance Business, the main revenue sources are loan handling fees, interest, and servicing fees; loan receivables are immediately transferred to the Japan Housing Finance Agency or trust companies to minimize default risk. In the Housing Defect Insurance Business, insurance/warranty premium income and inspection fee income are received as advance payments, with risk hedged through reinsurance. In the Jutaku Academeia Business, administration fees for housing warranty services are accumulated. The structure maximizes revenue per customer through cross-selling across the three businesses.
Company Strengths
Nationwide, only five corporations have been designated by the Minister of Land, Infrastructure, Transport and Tourism as housing defect liability insurance corporations. Subsidiary House G-men is one of them, and holds a high-entry-barrier business that can exclusively sell New Home Defect Insurance, which is a legally mandated insurance. In FY2026 (ending March 2026), this business recorded operating revenue of ¥3,375 million and operating profit of ¥361 million, up 26.0% year on year.
The company holds a product lineup of over 90 types, ranging from housing loans such as Flat 35, housing defect insurance, Ground Warranty, Housing Performance Evaluation, Housing Maintenance Warranty, and Housing Equipment Extended Repair Warranty, to the housing business cloud service "Suketto Cloud." According to the securities report, the company's system of cross-selling multiple services for a single house—from new construction through after-delivery maintenance to secondhand distribution—is unique in Japan.
In the Housing Finance Business, the company minimizes default risk by immediately transferring Flat 35 loan receivables to the Japan Housing Finance Agency, and by transferring the variable-rate proper loan "Toiro" to a trust company via trust assignment. For bridge loans as well, collection risk is contained by utilizing the right of proxy receipt. In FY2026 (ending March 2026), operating profit in the Housing Finance Business was ¥1,137 million, the largest among all segments, accounting for approximately 72% of group profit.
ENVALITH's Perspective
Performance Trend
Operating revenue over the past five fiscal periods peaked at ¥7,689 million in FY2022, declined to ¥7,111 million in FY2024, and then recovered for two consecutive periods to ¥7,566 million in FY2025 and ¥7,960 million in FY2026 (ending March 2026). Operating profit similarly declined from ¥1,696 million in FY2022 to ¥1,398 million in FY2024, before recovering to ¥1,584 million in FY2026 (ending March 2026), indicating a recovery trend. Factors behind the revenue increase in FY2026 (ending March 2026) include the recovery of the Flat 35 market driven by rising variable interest rates (an external factor), as well as a 5.6% increase in the number of loans executed and an increase in loan amounts due to soaring housing prices. The disappearance of one-time costs related to the head office relocation incurred in the previous period also contributed to the profit increase. On the other hand, the company's forecast for FY2027 (ending March 2027) projects operating revenue of ¥8,200 million (+3.0%) against operating profit of ¥1,340 million (-15.4%), a significant profit decline. This is likely mainly attributable to increased operating costs from rising funding costs and the continued decline in housing starts.
Growth Strategy
In the short term, the company is strengthening services for the existing home market and deepening cross-selling; in the long term, it aims to build a platform centered on settlement finance
The company positions products for existing homes, such as the Buy-and-Resell Loan, as a growth area, and is advancing sales strengthening and product lineup expansion. This is a strategy to offset the structural headwind of a shrinking new-build market by shifting toward the existing home market. Results from promoting the Buy-and-Resell Loan were achieved in FY2026 (ending March 2026).
The company is deepening its one-stop solution for building confirmation applications linked with housing defect insurance, strengthening support for improving operational efficiency among housing businesses. It aims to capture demand arising from delays in building confirmations caused by the enforcement of the revised Building Standards Act.
The company continues to develop additional functions for its housing business cloud system, Suketto Cloud, and is expanding cross-selling of housing warranty services and other offerings to client businesses using the system. In FY2026 (ending March 2026), the number of housing warranty service cases steadily increased, up 4.4% year on year.
The company aims to accelerate alliances through business partnerships and participation in non-profit organizations, and to build a platform that enables separated ordering of materials and labor via an open-book method, as well as C-to-C real estate transactions. It is advancing the creation of a monetization framework centered on settlement finance.
Last updated: July 19, 2026