ESMA_QA_40

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/40

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Regulatory Context

Regulation : SECR

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

Level 2 Regulation: ITS on the format and standardised templates for making available the information and details of a securitisation by the originator, sponsor and SSPE and associated ANNEXES

Level 3 Regulation: No information available

Topic: Securitisation Regulation

Subject Matter: Follow up question about OLTV “RREC16”

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Question

Submission Date: 26 October 2020

Even though asked in Question Q5.2.10 e) it is still not clearly stated if the ‘Original Loan-To-Value’, similarly to ‘Current Loan-To-Value’, of loan 1 is also to be updated when issuing loan 2 at a later point in time or if the ‘Original Loan-To-Value’ must be constant over the lifetime of loan 1.

Suppose there are two loans A & B at time 0 and we apply a pro rata approach, as stated in Q5.2.10d), for the OLTV. At time 1 a new loan C against the same collateral is issued. Is the OLTV of loan A and B to be updated, to complete a pro rata approach for all three loans? Or does the OLTV of Loan A and B stay constant over the lifetime of the loans?

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ESMA Answer

Answer Date: 09-11-2023

Please see Q/A 1323 which covers the situation under e)

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