NON-MORTGAGE AND MORTGAGE LOANS IN ARREARS PURPOSE This return provides the with information relating to nonmortgage and mortgage loans in arrears. STATUTORY Sections 628 and 600 of the Bank Act and Section 495 of the Trust and Loan Companies Act. APPLICATION This return applies to all deposit-taking institutions. PUBLICATION Information from this return is not published. FREQUENCY Institutions with fiscal year-ends of October - Quarterly - January, April, July and October Institutions with fiscal year-ends of December - Quarterly - March, June, September and December CONTACT PERSON Provide the name and phone number of the person to contact regarding any questions about this return. REPORTING DATES The return is to be completed as of the last day of each quarter and submitted within 45 days of the reporting date as follows: Institutions with fiscal year-ends of October - January, April, July and October Institutions with fiscal year-ends of December - March, June, September and December CONTACT AGENCY OSFI. Revised: July 2017 Page 1
GENERAL INSTRUCTIONS All amounts are to be expressed in thousands of Canadian dollar equivalents. SECTION I - NON-MORTGAGE LOANS IN ARREARS Other instructions: This return provides information on the personal loans reported as Asset 3(a)(vi) on the Balance Sheet including arrears. Report all figures on a consolidated basis. Loans to individuals for non-business purposes are those used to finance the acquisition of consumer goods and services, including the acquisition of securities. To Individuals for Non-Business Purposes: (i) Personal loan plans Include: loans granted under a bank s personal loan plan (that is loans which are generally available, are made subject to standard terms and conditions and are usually repaid on an instalment basis), whether at a fixed or variable rate of interest; conditional sales contracts to finance the acquisition of consumer goods and services. (ii) Credit card loans Include: outstanding balances under a credit card plan if users have established access to credit and outstanding items are not debited to the user s deposit account as in the case of ordinary cheques. (iii) Other personal loans Include: loans on the security of bonds or stocks; loans to individuals for non-business purposes which are advanced under pre-arranged lines of credit; overdrafts in individuals deposit accounts under Liability 1(d) and overdrafts in tax accounts related to residential mortgages; bridge financing loans associated with residential properties; government-guaranteed loans made to individuals for non-business purposes, such as Home Improvement Loans under the National Housing Act and Canada Student Loans; all other loans to individuals for non-business purposes not included above. Revised: July 2017 Page 2
Gross Outstanding Non-Mortgage Loans For each loan category, report the gross outstanding amount before the allowance for expected credit losses as well as the allowance for expected credit losses and the net amount. The total of the Net Non-Mortgage Loans must agree with Asset 3(a)(vi) on the Balance Sheet. Accounting Adjustment for Balance Sheet Purposes These adjustments are intended to facilitate reporting by allowing small capitalized loan expenses such as legal fees and origination costs to be reported separately. Total Credit Impaired Non-Mortgage Loans For each loan category, report the credit impaired loans. Report all loans which are impaired whether or not they are in arrears. Gross Amount of Outstanding Non-Mortgage Loans (Current and in Arrears) For each category, report the amount of loans that are current and, for non-current loans, the amount that are in arrears by period of time that they are overdue, i.e. 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. Loans are in arrears when the principal or interest payment is overdue in accordance with the institution s internal policies and standards. Report the amounts in arrears on a gross basis. SECTION II - MORTGAGE LOANS IN ARREARS Other Instructions: This return provides information on the mortgages reported as Asset 3(b) on the Balance Sheet including arrears. The categories for the type of properties in this return are the same as used in the Mortgage Loans Report. 1. Properties Located In Canada (a) Residential (i) Single Detached (ii) Multiple Dwellings (A) Condominiums (B) Other Total Residential (b) Total Non-Residential Total Properties Located In Canada 2. Properties Located Out of Canada (a) Residential (b) Non-Residential Total Properties Located Out of Canada 3. Total Mortgage Loans Revised: July 2017 Page 3
Report the relevant amounts for lines 1(a)(i), 1(a)(ii)(A), 1(a)(ii)(B), Total Residential, Total Non-Residential, Total Properties Located In Canada, 2(a), 2(b), Total Properties Located Out of Canada, and Total Mortgage Loans under the appropriate headings. Gross Outstanding Mortgage Loans For each mortgage loan category, report the gross outstanding amount for insured and uninsured mortgage loans before the allowance for expected credit losses as well as the allowance for expected credit losses and the net amount. The total of the Net Mortgage Loans must agree with Asset 3(b) on the Balance Sheet. Accounting Adjustment for Balance Sheet Purposes These adjustments are intended to facilitate reporting by allowing small capitalized loan expenses such as legal fees and origination costs to be reported separately. Total Credit Impaired Mortgage Loans For each mortgage loan category, report the amount of credit impaired loans. Report all mortgage loans which are impaired whether or not they are in arrears. Gross Amount of Outstanding Mortgage Loans (Current and in Arrears) For each category, report the amount of loans that are current and, for non-current loans, the amount that are in arrears by period of time that they are overdue, i.e. 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. Mortgage loans are in arrears when the principal or interest payment is overdue in accordance with the institution s internal policies and standards. Report the amounts in arrears on a gross basis. SECTION II MEMO ITEMS 1. Name of Mortgage Insurance Company (a) CMHC (b) Genworth (c) Canada Guaranty Mortgage Insurance Company (d) Other Lines 1(a) to (d) refers to Canadian mortgage insurers for properties located in Canada. Line 1(e) should include properties covered by any other Canadian mortgage insurers and those covered by foreign mortgage insurance for properties outside Canada. The column is to be completed in total number of units or total loans insured. Any foreign insured units should only be captured under 1(e) Other. The Total column is to be reported in thousands of dollars. Revised: July 2017 Page 4
2. Insurance Claims (a) In process Report total dollar (thousands) gross claims outstanding which have not yet been collected and not yet rejected. Include only amounts that have not been fully provided for or written off on financial statements. (b) Rejected Report claims which the mortgage insurer has rejected. Include only amounts which have not been fully provided for or written off. SECTION III RECOGNIZED AND UNRECOGNIZED SECURITIZED LOANS IN ARREARS 1. Non-mortgage loans (to individuals for non-business purposes) (a) Institution owned securitized assets (b) Third party securitized assets 2. Mortgage Loans (a) Institution owned securitized assets (b) Third party securitized assets These memo items cover both recognized and unrecognized securitized loans in arrears. Only securitized mortgages (both non-residential and residential) and non-mortgage loans to individuals for non-business purposes are required to be reported. Report insured and uninsured items separately. Revised: July 2017 Page 5
CHANGE CONTROL LOG Amendment Effective Reporting Date Page Description 1 Q1 1998 2, 4 Add: Section II - Mortgage Loans in Arrears Mortgage loans in arrears for mortgages on properties located out of Canada 2 Q1 2000 1 Add: Section 600 of the Bank Act (applies to Foreign Bank Branches) Change: Section 523 of the Bank Act is now Section 628 3 Q1 2008 2, 4 Change: Gross Non-Mortgage Impaired Loans to Gross Impaired Non-Mortgage Loans 4 Q1 2009 2 Delete: The return template copy has been deleted from these instructions and has been posted as a separate item on OSFI s website References 2(a)(iv) or 2(b)(iv) under (iii) Other personal loans 2, 3, 4 Change: Reference to Asset 11(f) changed to Asset 3(a)(vi) Reference to Asset 12 changed to Asset 3(b) 4 Add: Instructions under Section II Memo items Instructions under Section III Recognized and Unrecognized Securitized Loans in Arrears 5 Q1 2010 3 Change: Gross Non-Mortgage Loans to Gross Outstanding Non-Mortgage Loans as well as related instructions Gross Amount of Non-Mortgage Loans in Arrears to Gross Amount of Outstanding Non-Mortgage Loans (Current and in Arrears) and related instructions 4 Change: Gross Mortgage Loans to Gross Outstanding Mortgage Loans as well as related instructions Gross Amount of Mortgage Loans in Arrears to Gross Amount of Outstanding Mortgage Loans (Current and in Arrears) and related instructions 6 Q1 2012 4 Delete: (c) PMI, under Section II Memo Items Change: (d) AIG United Guarantee changed to (c) Canada Guarantee Mortgage Insurance Company, under Section II Memo Items 7 Q1 2017 3, 4 Add: New column added to Section I and II Basis Adjustment for Balance Sheet Purposes Revised: July 2017 Page 6
CHANGE CONTROL LOG Amendment Effective Reporting Date Page Description 8 Q1 2018 3, 4 Change: Allowance for impairment to Allowance for expected credit losses 3 Change: Total Gross Impaired Non-Mortgage Loans to Total Credit Impaired Non- Mortgage Loans 4 Change: Total Gross Impaired Mortgage Loans to Total Credit Impaired Mortgage Loans Revised: July 2017 Page 7