Home Mortgages Training Manual

Properties must not exceed 150 square meters of living space for houses and 100 square meters for other types of housing units, unless the costs of additional floor space above these limits are covered by an increase in equity by the borrower. Exterior design, interior layout, and materials must conform to the Bank's standards for homes of the type being financed. Loan approval authority is granted to the Credit Department Manager and the senior officer of the mortgage unit, who jointly approve loans and approve exceptions to policy. Any such approvals are presented to the Loan Committee for review and information. This practice is used judiciously. Loan amounts do not exceed 75% of the appraisal value or the property value, whichever is less. Additionally, loans do not exceed 36 times the verified monthly household income of the borrower. The Credit Department Manager and the senior officer of the mortgage unit review loan applications and make decisions based on standard forms and specific ratios. The process is less complicated than construction loans, and the committee reviews loans that have met the specific guidelines with respect to property value and credit and income requirements. The Loan Committee is comprised of the Credit Department Manager, the Senior Officer of the mortgage unit, and a representative of the Bank's senior management. The senior management representative is rotated among several officers to provide knowledge concerning this type of lending and to ensure senior management is aware of the mortgage unit's operations and compliance with Bank policy. Meetings for loan approval are scheduled based on the number of loans to be considered. The Credit Policy for Home Mortgages emphasizes the importance of prudent lending practices, including the review of loan applications, the verification of income and creditworthiness, and the appraisal of the property value. The policy also emphasizes the need for compliance with Bank regulations and Bank policy, as well as the need for transparency and accountability in the lending process.