| 1 |
Funding /risk transfer / both |
Funding only. The shareholder bank keeps the mortgage loans and customer credit risk.
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| 2 |
Eligible assets |
Qualifying residential home-purchase loans to individuals, secured by first-ranking residential mortgages or qualifying guarantees and meeting CRH's legal, geographic, seasoning, valuation and concentration criteria.
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| 3 |
Brief description of structure for each |
CRH issues French-law bonds and uses the proceeds to acquire promissory notes issued by shareholder banks with the same rate and maturity. Each shareholder pledges an eligible pool of residential loans to secure its promissory notes. On specified default events CRH can enforce or acquire the pledged portfolio.
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| 4 |
Fees / pricing structure |
The promissory-note terms mirror the relevant bond's rate and maturity. The all-in cost also allocates issuance, hedging, liquidity and CRH operating costs
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| 5 |
Servicing |
The shareholder/originating bank continues to service and monitor the pledged mortgage loans
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| 6 |
Risk sharing (if appropriate) |
The shareholder bank remains directly liable on its promissory note and retains borrower credit risk. CRH has dual protection through the shareholder-bank obligation and the pledged eligible-loan pool, subject to statutory over-collateralisation and eligibility tests.
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| 7 |
Other Comments |
At least 125% pledged cover for fixed-rate refinancing and 150% for variable-rate refinancing
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