Notice Of Information On The Risk Classification Of Certain Loan Products

Original Language Title: Bekendtgørelse om oplysning om risikoklassificering af visse udlånsprodukter

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Overview (table of contents)



Annex 1



Breakdown of lending products against a mortgage or mortgage a share in a andelsboligforening in risk categories


The full text of the Decree on disclosure of risk classification of certain loan products

Under section 43, paragraph 3, and § 373, paragraph 4, of the financial business Act, see. lovbekendtgørelse nr. 705 of 25. June 2012, as well as section 14 (b) and section 30, paragraph 5, of the law on the placing on the market referred to in article 6. lovbekendtgørelse nr. 58 of 20. January 2012, fixed: scope



§ 1. The notice applies to operators offering own or other trader's loan or credit offer with a principal of over 100,000 KR. for consumers and housing associations against mortgages or mortgage a share in a housing association.

Information requirements



§ 2. Operators must do so or otherwise clearly show awareness of risk classification of loan or credit offer, pursuant to section 3. Information should be freely available to borrowers at the place where the loan is offered.

(2). Operators must also provide information on risk classification of loan or credit offer on any website.

(3). Information on risk classification, under section 3, shall also be included in the advice, as banks and mortgage-credit institutes are committed to providing in accordance with sections 7 and 14 of the Ordinance on best practices for financial companies, mutual funds, etc.

§ 3. Loan or credit offer, which, within the meaning of § 1, subject to the provisions of this Ordinance shall be divided into 3 categories of risk: green, yellow or red, see. paragraphs 2 to 4.

(2). A loan or credit offer is in the category of green when it throughout the period of the loan be repaid in continuously and it is fixed-rate or variable-rate with the interest rate cap.

(3). A loan or credit offer is in the category of yellow when it is variable-rate or interest-free in all or part of the loan term.

(4). A loan or credit offer is in the category red, when it is offered as a package consisting of a loan and a separate financial instrument, other than a fixed rate agreement and rate contract when the loan is recorded in a currency other than USD and EUR, or when the loan can not be met to rate less than or equal to 105 after 9 years or later.

(5). It is clear from Annex 1 which loan or credit offer that can be included in the category of green, yellow and red, respectively.

(6). Loan packages, consisting of fixed-rate loans or variable interest loans with interest rate cap throughout term, where at least one of the loans to be repaid, and constantly where repayment profile for the loan package is equivalent to a fixed-rate loan with installments with the same maturity as the loan package, is in the category of green. Other loan packages be categorized see. paragraph 2-4 after the most risky loans. By loan packages means a plurality of loan or credit offer, offered together, and where the granting of the loans are conditional on each other.

Supervision and penalties



§ 4. The Danish financial supervisory authority supervises the banks and mortgage-credit institutions ' compliance with this Decree, without prejudice. § 344 (1) of the financial business Act.

(2). The Danish financial supervisory authority may, in accordance with article 3. § 348 (2) 1. point, in the financial business Act, give orders for the rectification of the relationship, which is in contravention of section 2.

(3). The Consumer Ombudsman supervises the operators other than banks and mortgage-credit institutions ' compliance with this Ordinance. Supervision by the Danish marketing law rules.

§ 5. Violation of section 2 is punishable by a fine.

(2). With fine punished anyone who fails to comply with the injunction pursuant to section 4, paragraph 2.

(3). That can be imposed on companies, etc. (legal persons) criminal liability according to the rules laid down in the Penal Code Chapter 5.

Date of entry into force of



§ 6. The notice shall enter into force on the 1. July 2013.

The Danish Ministry of business and growth, the 18. December 2012 Annette Vilhelmsen/Louise M Annex 1 breakdown of lending products against a mortgage or mortgage a share in a andelsboligforening in risk categories Category





Description





Eksempler1)







1: ”Grøn”





A loan or credit offer, as in the whole of the loan be repaid in continuously and is fixed-rate or variable-rate with the interest rate cap.





1)





Fixed-rate mortgages with repayments.





 



2)





Fixed-rate Bank loans with repayments.







3)





Fixed-rate loans made by other lenders other than banks and building societies with installments.





 

 

 



4)





Variable interest loans with repayments and interest rate cap.





 

 

 



5)





Andelsboliglån with fixed-rate mortgage.





 

 

 



6)





Andelsboliglån with variable-rate mortgage repayments and interest rate cap.







2: "Yellow"





A loan or credit offer that is variable-rate and/or interest-free in all or part of the loan term.





1)





Fixed-rate mortgage without principal payments.





 



2)





Fixed-rate Bank loans without mortgage.







3)





Variable-rate mortgages with/without capital repayments.





 

 

 



4)





Variable-rate Bank loans with/without capital repayments.





 

 

 



5)





Variable-rate loans made by other lenders other than banks and mortgage companies with/without capital repayments.





 

 

 



6)





Fixed-rate loans made by other lenders other than banks and building societies without capital repayments.





 

 

 



7)





Variable interest andelsboliglån with/without capital repayments.





 

 

 



8)





Variable interest loans with interest rate cap without capital repayments.







3: "Red"





A loan or credit offer that:





1)





Loans, which at the conclusion of an agreement on an interest rate swap.





 



(a))





offered as a package consisting of a loan and a separate financial instrument other than a fixed rate agreement and rate contract,



 



 

 



2)





Loans recorded in currency other than USD or EUR.





 

 



3)





Loans that cannot be settled to rate less than or equal to 105 after 9 years or later.





 

 

 



 



(b))





are recorded in currency other than USD and EUR, or




 

 



 



(c))





cannot be met to rate less than or equal to 105 after 9 years or later.



 

 







1) all examples require a principal of over 100,000 USD.