Loans in Arrears (N3)

Non-mortgage and mortgage loans in arrears

Purpose

This return provides the Office of the Superintendent of Financial Institutions with information relating to non-mortgage 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.

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:

• 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.
• 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.
• 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.

Gross Outstanding Non-Mortgage Loans

For each loan category, report the gross outstanding amount before the allowance for Highlighted Text*expected credit losses* as well as the allowance for Highlighted Text*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 Highlighted Text*Credit* Impaired Non-Mortgage Loans

For each loan category, report the Highlighted Text*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
   1. Residential
      1. Single Detached
      2. Multiple Dwellings
         1. Condominiums
         2. Other
      3. Total Residential
   2. Total Non-Residential
   3. Total Properties Located In Canada
2. Properties Located Out of Canada
   1. Residential
   2. Non-Residential
   3. Total Properties Located Out of Canada
3. Total Mortgage Loans

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 Highlighted Text*expected credit losses* as well as the allowance for Highlighted Text*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 Highlighted Text*Credit* Impaired Mortgage Loans

For each mortgage loan category, report the amount of Highlighted Text*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

1. CMHC
2. Genworth
3. Canada Guaranty Mortgage Insurance Company
4. 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 Number 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.

2. Insurance Claims

1. In process
   1. 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.
2. Rejected
   1. 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)

1. Institution owned securitized assets
2. Third party securitized assets

2. Mortgage Loans

1. Institution owned securitized assets
2. 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.