Instruction No. 2020-I-04 of April 3, 2020 on Monitoring the Profitability of Mortgages in France — ACPR — FR

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2020-I-04 on the monitoring of the profitability of mortgages in France

The Prudential Control and Resolution Authority, Having regard to the Monetary and Financial Code, in particular Articles L. 515-13 to L. 515-39 as well as L. 612-24 and R. 515-2 to R. 515-17; Having regard to the request addressed on December 12, 2019, by the High Council for Financial Stability to the Prudential Control and Resolution Authority to implement detailed reporting on mortgage pricing; Having regard to Articles 109 and 110 of the Order of November 3, 2014, relating to internal control of companies in the banking, payment services, and investment services sectors subject to the control of the Prudential Control and Resolution Authority; Having regard to the opinion of the Prudential Affairs Consultative Commission of March 18, 2020, DECIDES

Article 1:
For the purposes of this Instruction, the following terms are defined below:
a) "subject institutions":

credit institutions and investment firms, other than portfolio management companies, as well as legal entities that are members of regulated markets for financial instruments or that carry out a financial instrument clearing activity, with the exception of branches of investment firms having their registered office in another Member State of the European Union or a party to the Agreement on the European Economic Area,
whose activities with customers (including hire-purchase) represent more than 30 million euros or 20% of the total of assets and liabilities.
b) "mortgages": loans as defined by Article L. 313-1 of the Consumer Code.

Article 2:
Subject institutions shall report information intended to assess the profitability of their mortgages on the RENT_IMMO table presented in the annex to this Instruction, in accordance with the provisions set out in this Instruction. The table comprises a tab for the origination of new mortgages, a tab for mortgage renegotiations, and a tab for mortgage outstanding balances.

The submission is made based on accounting and management information on a social perimeter basis.

Article 3:
This Instruction enters into force:

from its date of signature for institutions that, on the date of publication of this Instruction, were subject to the submission of the CREDITHAB statement pursuant to Article 1(a) of Instruction No. 2011-I-14 of the Prudential Control and Resolution Authority.

Subject institutions shall communicate to the Prudential Control and Resolution Authority, no later than September 30, 2020, statements relating to the profitability of new credit production and renegotiations as of March 31 and June 30, 2020, as well as a statement relating to the profitability of the outstanding balance as of June 30, 2020; they shall furthermore accompany these first submissions with a note explaining how the different sections of the three tables were completed.

By way of exception to the rules for transmitting accounting and prudential information to the Prudential Control and Resolution Authority, data relating to the deadlines of March, June, September, and December 2020 for new credit production and renegotiations, and June and December 2020 for outstanding balances, shall be submitted in Excel format to the following address: SATRISK-2777@acpr.banque-france.fr.

From the deadline of March 31, 2021, for new credit production and renegotiations, to be submitted no later than April 30, 2021, and from the deadline of June 30, 2021, for the outstanding balance, to be submitted no later than July 31, 2021, institutions shall electronically transmit the RENT_IMMO state as defined by this Instruction.

from July 1, 2021, for institutions that were not submitting the CREDITHAB statement on the date of publication of this Instruction. Subject institutions shall electronically transmit, with the first submission, data relating to the deadlines of March 31 and June 30, 2021, for new credit production and renegotiations, and to the deadline of June 30, 2021, for the outstanding balance.

Article 4:
For networks of credit institutions with a central body, the submission of data, on an aggregated basis for all affiliated credit institutions, shall be carried out by the central body. Submission adaptations, on a specifically defined perimeter of reporting entities within a network, may be taken by specific decision to meet the supervisory needs of the Prudential Control and Resolution Authority.

Paris, April 3, 2020
The Designated President,
[Denis BEAU]

Annex to Instruction No. 2020-I-04

[Table 1: New Mortgages Origination]

Activity: France | Currency: Euros | Social Perimeter

Revenues on Production
R0030 Average TESE (Total Effective Cost of Credit): 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0040 Processing fees: 0 € R0050 Renegotiation commissions: 0 € R0060 Commissions from distribution of insurance contracts: 0 € R0070 Of which on borrower insurance contract: 0 € R0080 Of which on multi-risk home insurance contract: 0 € R0090 Commissions from distribution of guarantee contracts: 0 € R0100 Other products related to the establishment of the loan: 0 €

Charges on Production
R0110 Internal transfer pricing rate: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0120 Of which swap rate corresponding to the average modeled maturity: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0130 Of which liquidity premium: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0140 Of which forward adjustment: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0150 Of which premium related to prepayment risk: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0160 Forecasted management fee rate: 0.00% R0170 Of which direct management fees: 0.00% R0180 Of which broker commissions: 0.00% R0190 Of which indirect management fees: 0.00% R0200 Forecasted cost of risk: 0.00%

Cost of Capital
R0210 Risk-weighted assets for credit risk associated with production: 0 € R0220 Target CET1 capital ratio: 0.00% R0230 Target remuneration of equity: 0.00% R0240 Supplementary information: reference used for the swap rate [text]

0 € Data in thousands of euros
TOTAL New Mortgages Origination
Maturity
RENT_IMMO
Indicators for monitoring the profitability of mortgages in France

[Table 2: Mortgage Renegotiations]

Activity: France | Currency: Euros | Social Perimeter

Charges on Production
R0110 Internal transfer pricing rate: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0120 Of which swap rate corresponding to the average modeled maturity: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0130 Of which liquidity premium: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0140 Of which forward cost: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0150 Of which premium related to prepayment risk: 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% R0160 Forecasted management fee rate: 0.00% R0170 Of which direct management fees: 0.00% R0180 Of which broker commissions: 0.00% R0190 Of which indirect management fees: 0.00% R0200 Forecasted cost of risk: 0.00%

0 € Data in thousands of euros
RENT_IMMO
Indicators for monitoring the profitability of mortgages in France Renegotiations Maturity TOTAL

[Table 3: Outstanding Balances]

Social Perimeter | Activity: France | Currency: Euros C0010

R0010 Average outstanding balance of mortgages for the period: 0 €

Revenues
R0020 Gross interest revenues on mortgage outstanding balance: 0 €

Other Revenues
R0030 Processing fees: 0 €
R0040 Renegotiation fees: 0 €
R0050 Early repayment indemnities: 0 €
R0060 Commissions from distribution of insurance contracts: 0 € R0070 Of which on borrower insurance contract: 0 € R0080 Of which on multi-risk home insurance contract: 0 € R0090 Commissions from distribution of guarantee contracts: 0 € R0100 Other products that can be attributed to mortgages: 0 €

Charges
R0110 Cost of refinancing mortgages: 0 €

Average Cost of Liabilities
R0120 Interest on non-financial customer deposits: 0 € R0130 Of which on regulated savings: 0 € R0140 Interest on financial customer resources: 0 € R0150 Of which on intragroup financing: 0 € R0160 Interest on market resources: 0 € R0170 Of which on secured debt: 0 € R0180 Remuneration of equity: 0 € R0190 Net products (+) / charges (-) from interest rate risk hedging: 0 €

Liability Structure
R0200 Average outstanding balance of non-financial customer deposits: 0 € R0210 Of which average outstanding balance of regulated savings: 0 € R0220 Average outstanding balance of financial customer resources: 0 € R0230 Of which average outstanding balance of intragroup financing: 0 € R0240 Average outstanding balance of market resources: 0 € R0250 Of which average outstanding balance of secured debt: 0 € R0260 Average equity: 0 € R0270 Management fees attributable to the activity: 0 € R0280 Of which direct management fees: 0 € R0290 Of which broker commissions: 0 € R0300 Of which indirect management fees: 0 € R0310 Operating coefficient of the relevant perimeter: 0.00% R0320 Cost of risk: 0 €

Cost of Capital
R0330 Risk-weighted assets for credit risk associated with outstanding balances: 0 € R0340 Target CET1 capital ratio: 0.00% R0350 Target remuneration of equity: 0.00%

0 € Data in millions of euros
Total Outstanding Balance
RENT_IMMO
Indicators for monitoring the profitability of mortgages in France

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

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