ESMA_QA_1361

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1361

---

Regulatory Context

Regulation : SECR

Level 1 Regulation: Securitisation Regulation (EU) 2017/2402

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Securitisation Disclosure Templates

Subject Matter: Prior Principal Balances

---

Question

Submission Date: 17 July 2019

(a) Does the term “balances ranking prior” refer to loans which are more senior than the underlying exposure in the securitisation or rather to loans which were issued prior to the loan in the securitisation?

(b) Does this include a balance on a previous mortgage if the case is a re-mortgage?

---

ESMA Answer

Answer Date: 17-07-2019

[ESMA 33-128-563 Securitisation Q&A, Q&A 5.3.27] (a) The term “balances ranking prior” refers to underlying exposures which, at the data cut-off date, are more senior than the underlying exposure in the securitisation. (b) If the underlying exposure is a re-mortgage, and the previous mortgage has been terminated, then this field should not be completed with the balance of that prior mortgage. This field should be completed for all currently-outstanding underlying exposure principal balances that rank above the current underlying exposure balance being reported in this submission of Annex 2 (or Annex 4, where applicable).

---

This document was automatically extracted from the ESMA EMIR Q&A database.