This standard is made based on business practices or studies and good mortgage institutions from different countries that can uphold with Indonesia’s law. Standard document is composed of guidelines for mortgage lenders, it started with originator, underwriting, servicing, up to the standard of agreement, application of mortgage lender and standardize appraisal.
The standard that is made in a form of guidelines, but then the most important to adopt is the criteria listed in the standard such as LTV ratios, DTI ratios and habitable home requirements, should be assessed / appraisal before the credit agreement and others. Mortgage distributors may use this standard as a reference, that the required criteria are a sound mortgage standard