UK Finance has responded to proposal 2 of Chapter 3 - Securitisation – of the PRA’s CP 13/24

We raised concerns about the PRA’s classification of an individual loan benefiting from credit insurance – for instance a Mortgage Indemnity Guarantee – as being in itself a securitisation.

This prevents inclusion of these individual loans in Retail Mortgage Backed Securitisations, as this would consequently amount to a re-securitisation, which is prohibited. 

We encouraged the PRA to reconsider it view on the classification of such loans as securitisations, a view that is not universally held by our members.

Area of expertise:
Prudential risk, reporting and tax
UK Finance has responded to proposal 2 of Chapter 3 - Securitisation – of the PRA’s CP 13/24

24.01.25

Consultation Responses

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