Minimum Quality Standards for Mortgage Lending in Pakistan

This Guide on Minimum Quality Standards (MQS) for Mortgage Lending will provide recommendations to lenders on underwriting, servicing, and risk management of mortgage loan portfolios so that there is a common understanding among market participants on these standards in Pakistan.

Standardization of mortgages allows for easy access to capital markets since it facilitates the risk analysis of investors, rating agencies, and other parties. In addition, a minimum level of MQS is required in order to ensure the mortgages attracted by PMRC are comparable in quality and can be securitized.

This Guide was developed by IFC and PMRC and benefitted from comments from the banking industry in Pakistan. In two discussion rounds organized by PMRC in April and August 2017, discussions focused on current lending practices and international standards. These discussions formed the basis for this Guide.

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