Obligations à l'Habitat - OH

1 Who is the issuer?
  • Specialized credit institution
  Comments: Société de Financement de l'Habitat
2 Does the bondholder have recourse to the credit institution?
  • Yes, direct
3 Who owns the cover assets?
  • Credit institution, but pledged to the issuer (with transfer to the issuer upon trigger event)
  Comments: Article L. 515-19 provides a security to the benefit of the bondholders.
4 Is the issuer the originator of the assets?
  • No
  Comments: Art. L.515-35
1 Are the bonds governed by a special covered bond Legislation?
  • Yes
  Comments: Article L. 515-34 and seq. of the French Monetary and Financial code.
2 What is the legal framework for bankruptcy of the issuer of covered bonds?
  • General insolvency law
  • Specific legal framework superseding the general insolvency law
  Comments: Article L. 515-27 of the French Monetary and Financial code excluding any extention of insolvency procedure of the parent company of the issuer.
1 What types of assets may be included in cover pools?
  • Mortgage loans (Mortgage loans for the purpose of this question are taken to include guaranteed real-estate loans.)
  • Group originated Senior MBS
  • Senior MBS issued by third parties
2 What is the geographical scope for public sector assets?
  • Other
  Comments: Not applicable.
3 What is the geographical scope for mortgage assets?
  • Domestic
  • EEA
  • Other
  Comments: Countries with the best possible rating with one of the rating agencies recognised by the French banking supervisor. In practise, SFHs have solely domestic loans for now.
4 Are regular covered bond specific disclosure requirements to the public mandatory?
  • Yes

Global comments for this chapter

Quarterly publication on the cover pool.
1 LTV is calculated using which valuation?[4]
  • Market value
2 Are there any special LTV limits used solely for calculating collateralisation rates for the cover pool (if yes, specify)?
  • Residential      
    80 %
  Comments: Only loan amounts up to 80% LTV are taken into account in the asset test.
3 Do bondholders get the benefit of that portion of the loan which exceeds the LTV cap?
  • Yes
4a Is there an LTV cap which makes the entire loan ineligible to be put in the cover pool (if yes, specify)?
  • No
  Comments: Only loan amounts up to 80% LTV are taken into account in the asset test.
4b Is there an LTV cap which would require a loan to be removed from the cover pool?
  • No
  Comments: Only loan amounts up to 80% LTV are taken into account in the asset test.
5 Is there any additional LTV limit on a portfolio basis?
  • No
Exposure to market risk
1 Is exposure to market risk (e.g. interest rate, currency risks) required to be mitigated by law or contract?
  • Yes
2 What is the primary method for the mitigation of market risk?
  • Use of derivative hedge instruments
3 If the answer to the above question on market risk mitigation is “Use of derivative hedge instruments”, please specify whether those instruments are entered into:
  • By the time of issue of covered bonds or entry of asset in the cover pool
4 What type of coverage test is applied?
  • Nominal cover
5 What is the frequency of coverage calculations?
  • Monthly
6 What types of stress scenarios are applied?
  • Dynamic
7 What is the frequency of stress test calculations?
  • Monthly
Exposure to liquidity risk
8 Is exposure to liquidity risk required to be mitigated by law or contract?
  • Yes
9 What is the primary method for the mitigation of liquidity risk on interest payments?
  • Contractual arrangements, e.g. a requirement to establish a reserve fund
10 What is the primary method for the mitigation of liquidity risk on principal payments?
  • Contractual arrangements, e.g. maturity extension or prematurity test
11 Is there any grace period in case of a breach of liquidity risk mitigants?
  • No
12 What is the consequence of not fixing a breach of liquidity risk mitigants?
  • Programme freeze (neither sale of assets nor new issuance allowed)
  • Event of default of the issuer
Monitoring of exposures to market and liquidity risk
13 Who monitors the maintenance of coverage tests?
  • Supervisory authority
  • Rating agency
  • Trustee/cover pool monitor
14 Are there any regular public reporting requirements for market and liquidity risk?
  • Yes
Overcollateralisation
15 Is mandatory minimum overcollateralisation required?
  • By legislation/regulation
16 What is the level of minimum mandatory overcollateralisation?
  • 5 %
  Comments: 5% is the minimum level required by the law, and 8,1 % in the documentation.
17 If mandatory overcollateralisation is required, are the amounts above the minimum OC level protected?
  • Yes
18 Is there any grace period in case of a breach of the coverage test?
  • No
19 What is the consequence of not fixing a breach of the coverage test?
  • Programme freeze (neither sale of assets nor new issuance allowed)
  • Event of default of the issuer
1 Is a special license required for the issuing of covered bonds?
  • Yes, but no additional requirements
2 Are there special reporting duties of the covered bond issuer to the supervision authority concerning covered bonds and the cover pool, which go beyond the regular banking supervision?
  • Periodic reporting required
  • Reporting on demand for special occasions
3 What is the role of the banking supervision regarding covered bonds?
  • To check whether eligibility criteria are fulfilled and documented
  • Checking quality of cover assets (real estate valuations, etc)
  • Monitoring of exposure to market risk and liquidity risk
  • Evaluation of operational risk
  • To check minimum mandatory overcollateralisation requirements
  Comments: Done by the specific controller.
4 Is there a special role of banking supervision in crisis regarding covered bonds?
  • Safeguarding ongoing management of the cover pool directly or via a special administrator
  • Involvement in transfer of cover assets and covered bonds to another credit institution
5 Is there a cover pool monitor independent from the issuer?
  • Yes
  Comments: There is an Asset Monitor and a specific controller.
6 If there is an independent cover pool monitor, what are its duties?
  • Performing audits of the cover pool
  • Reporting duties to the supervision authority
  • Verification of coverage tests
  Comments: There is an Asset Montor and a specific controller who gives a sepcial authorization for any issue superior to 500 mio euros.
1 Do covered bonds automatically accelerate when the credit institution goes insolvent?
  • No
2 What is the cover pool?
  • All qualifying assets
3 How are the covered bondholders protected against claims from other creditors in case of insolvency of the issuer?
  • Preferential claim by law
  • Specific cover pool administration
4 Is there recourse to the credit institution’s insolvency estate upon a cover pool default?
  • Yes, senior to unsecured creditors
5 Are there provisions that require derivatives to continue in case of insolvency of the credit institution?
  • Yes
6 If derivatives are permitted in the cover pool, what is their ranking?
  • Pari passu to covered bond holders
1 Does the covered bond fulfil the criteria of UCITS 52(4)?
  • Yes
2 For further information regarding the compliance to the criteria of Article 129 of the Capital Requirements Regulation (CRR), please see the following links: http://ecbc.hypo.org/Content/default.asp?PageID=504#position https://www.coveredbondlabel.com
3 Are listed covered bonds eligible in repo transactions with the national central bank?
  • Yes
4 Are there any special investment regulations regarding covered bonds?
  • Yes
1 Link to National Association representing covered bond interests
  • Association
2 Link to national regulators and supervisors
3 Fact Book Country Chapter
  • Chapter
 
4 Hypostat Country Chapter
  • Chapter