An important requirement for the establishment of the Secondary Housing Housing Financing Market is the existence of an efficient and strong Primary Market.

To promote the volume of qualified mortgage and a strong primary market, SMF is allowed to give lending using funds that is obtained from bond issuance. The goal is to increase qualified mortgage volume so by 2018 there will be sufficient volume to ensure securitization transaction. A sustainable securitization transaction will form a market mechanism that support the decline of mortgage rate.


SMF offers liquidity facilitation in the form of loans channeled to mortgage brokers by refinancing (mortgaging) the mortgage portfolio already owned by the mortgage dealer. For the financing disbursed, SMF receives collateral for mortgage bills, including collateral rights attached to them, on condition of recourse. This means that if there is a mortgage that does not meet the requirements, including the substandard, then the dealer replace the mortgage with a smooth mortgage.


Called conditional purchase because the purchase is only for a certain time and there is a recourse requirement, meaning that if there is an unqualified mortgage bill, it must be replaced with a qualified bill. This new product is accounted for as a 'conditional' loan so that it does not qualify 'true sale' but is legally classified as a sale because the transaction document is a cessie deed. With this new program, SMF offers 2 programs to encourage the parties to transactions, namely Purchase without recourse, namely securitization and Repo KPR.