Instruction No. 2021-I-02 of January 29, 2021, on the Supervision of Risks on Mortgage Loans in France

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2021-I-02 on the Supervision of Risks on Mortgage Loans 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 Recommendation No. CERS/2016/14 of the European Systemic Risk Board of October 31, 2016, aimed at filling gaps in housing data, as amended by Recommendation No. CERS/2019/3; Having regard to the Recommendation of the High Council for Financial Stability No. R-HCSF-2021-1 of January 27, 2021, on developments in the French residential housing market regarding credit granting; Having regard to the opinion of the Prudential Affairs Consultative Committee of January 27, 2021, DECIDES

Article 1:
Instructions No. 2011-I-14 and No. 2020-I-02 are repealed.

Article 2:
For the purposes of this Instruction, the following terms are defined below:
a) "subject institutions": credit institutions and financing companies; b) "mortgage loans": credit contracts as referred to in Article L. 313-1 of the Consumer Code granted to economic agents located on French territory or intended for the financing of assets located on French territory.

The following are also considered mortgage loans under this Instruction:
i) "repair, improvement, or maintenance" loans and "construction expenses," if secured by a mortgage, by another comparable security on residential real estate, or by a right linked to residential real estate;

ii) credit consolidations referred to in Articles L. 314-10 to L. 314-12 and R. 314-18 of the Consumer Code, provided that the share of mortgage loans represents at least 60% of the total amount of consolidated loans or when they are secured by a mortgage, by another comparable security on residential real estate, or by a right linked to residential real estate;

iii) loans subject to renegotiation at the client's request;

iv) loans granted for the early repayment of a mortgage loan taken out with another credit institution (external buyouts).

c) "mortgage loan portfolio": the amount of mortgage loans defined in b) of this Article, measured on a consolidated basis on a given date or, for networks of credit institutions with a central body within the meaning of Article L. 511-30 of the Monetary and Financial Code, on an aggregated basis for all credit institutions affiliated with the central body.

Article 3:
Subject institutions report their monthly mortgage loan production on the CREDITHAB table presented in the annex to this Instruction.

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

For networks of credit institutions with a central body, the submission of data may be made by the central body on an aggregated basis for all affiliated credit institutions.

Article 4:
The CREDITHAB table is sent to the General Secretariat of the Prudential Control and Resolution Authority in XBRL format on a monthly basis, no later than the last day of the month following the date of the monthly closing, according to the technical specifications necessary for their processing as defined by the General Secretariat of the Prudential Control and Resolution Authority.

Article 5:
This Instruction enters into force as of March 1, 2021, for institutions whose mortgage loan portfolios defined in point c) of Article 1 exceed 4 billion euros on that date, and as of January 1, 2022, for other institutions.

Article 6:
Institutions presenting mortgage loan portfolios greater than or equal to 4 billion euros shall transmit, along with the data submission for the March 2021 deadline expected no later than April 30, 2021, the data relating to the deadlines for January and February 2021.

Furthermore, information regarding credit consolidations may only be submitted starting from the June 2021 deadline, to be submitted no later than July 31, 2021.

By way of exception to the provisions of Article 4 of this Instruction, data relating to the deadlines from January to September 2021 are submitted in Excel format to SATRISK-2777@acpr.banque-france.fr.

Starting from the October 2021 deadline, to be submitted no later than November 30, 2021, institutions submit the CREDITHAB statement in accordance with the provisions of Article 4 of this Instruction, while also sending the deadlines for January to September 2021 with their first electronic submission.

Paris, January 29, 2021
The Designated President,
[Denis BEAU]