Regulatory Alerts2017-05-05
Notice on Additional Criteria for Exposures Secured by Residential Real Estate
The Autorité des marchés financiers (AMF) issued this notice to adjust the application timeline for additional capital adequacy criteria governing new exposures secured by Canadian residential real estate. The AMF mandates that these provisions, which require a default-affected long-term average loss threshold (PCDR) plus a surcharge, apply to new uninsured exposures effective January 1, 2017, while delaying their application to newly insured exposures until January 1, 2018. This adjustment ensures financial services cooperatives comply with the updated Base Capital Adequacy Standards guideline without retroactive disruption to insured mortgage portfolios.
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