Document ID: chunk:federal_register_of_legislation:F2014L01824:body:0:p10
Version: federal_register_of_legislation:F2014L01824
Segment Type: other
Provision Reference: 
Character Range: 23422–26440

and 2.2: Pool cover

    (1)  Weighted-average LVR (%)

Input the weighted-average LVR as a percentage for each pool. The weighted-average LVR should be calculated outside of the reporting forms and should not be based on summarised data.

    (2)  Weighted-average age

Input the weighted-average age (in years) for each pool. The weighted-average age should be calculated outside of the reporting forms and should not be based on summarised data.

    (3)  Seasoning factor

This is the seasoning factor corresponding to the weighted-average age of the pool.

It is automatically determined from the weighted-average age in Column 2.

    (4)  Total sum insured

Report the sum insured for pools of loans. The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.

    (5)  PD factor

This is the PD corresponding to the weighted-average LVR of the pool.

It is automatically determined from the weighted average LVR percentage in Column 1.

    (6)  LGD factor

This is the LGD corresponding to the weighted-average LVR of the pool.

It is automatically determined from the weighted-average LVR percentage in Column 1.

    (7)  PML

This is automatically calculated as Column 4 multiplied by Column 3 multiplied by Column 5 multiplied by Column 6.

GRF_116_3 Probable Maximum Loss for LMIs - Commercial Loans

These instructions must be read in conjunction with the general instruction guide.

Explanatory notes

Commercial loan

A commercial loan is a loan that is not predominantly secured by a registered mortgage over residential property, and/or where APRA has given a direction that the loan should be classified as a commercial loan.

Instructions for specific items

    (1)  Factor

The probable maximum loss (PML) for a commercial loan is the sum insured multiplied by 8%.

    (2)  ADI

Report the sum insured for individual lenders mortgage insurer (LMI) policies insuring commercial loans that are approved, advanced and funded by an authorised deposit-taking institution (ADI).

    (3)  Non-APRA regulated

Report the sum insured for individual LMI policies insuring commercial loans that are approved, advanced and funded by a non-ADI.

    (4)  Total sum insured

The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.

    (5)  PML

This is automatically calculated as Column 4 multiplied by Column 1.

GRF_116_4 LMI Concentration Risk Charge

These instructions must be read in conjunction with the general instruction guide.

Instructions for specific items

(4)  Summary

These columns represent the total sum insured and probable maximum losses (PMLs) across all loans types, coverage types and origination channels.

Amounts are automatically derived from corresponding amounts in GRF 116.1 Probable Maximum Loss for LMIs – Standard Loans (GRF 116.1), GRF 116.2 Probable Maximum Loss for LMIs – Non-Standard Loans (GRF 116.2) and GRF 116.3 Probable Maximum