Eligibility requirements
Frequency of data submission (DECCs)
DECC loan-level data must be reported on at least a monthly basis, no later than one month following the cut-off date, which corresponds to the last calendar day of the month.
Scoring of data
DECC loan-level data are required to achieve a minimum level of compliance, which is assessed with reference to the availability of information for particular fields in the loan-level template. In order to ascertain the reasons for any unavailability of data, six “no data” (“ND”) options are available. These must be used whenever data cannot be submitted using the template.
The various “no data” options and their meaning are set out in the following table:
| “No Data” option | Explanation |
|---|---|
| ND 1 | Data not collected as not required by the underwriting criteria |
| ND 2 | Data collected at application but not loaded in the reporting system at completion |
| ND 3 | Data collected at application but loaded in a separate system from the reporting one |
| ND 4 | Data collected but will only be available from YYYY-MM |
| ND 5 | Not relevant at the present time |
| ND 6 | Not applicable for the jurisdiction |
No mandatory fields for loan-level data may be reported as “ND 1”, “ND 2”,
“ND 3” or “ND 4” for any individual transaction.
Applying the above-mentioned thresholds, the European DataWarehouse will generate and assign a score to each DECC following the submission and processing of loan-level data. This score will reflect the number of mandatory fields reported as “ND 1” and the total number of mandatory fields reported as “ND 2”, “ND 3” or “ND 4” (relative, in both cases, to the total number of mandatory fields). The options “ND 5” and “ND 6” may, in this regard, only be used if applicable to the relevant fields in the data reporting template.
The two thresholds are combined to produce the following matrix indicating the range of possible scores for loan-level data:
| ND 1 fields | |||||
|---|---|---|---|---|---|
| 0 | ≤ 10% | ≤ 30% | > 30% | ||
| ND 2, ND 3 or ND 4 | 0 | A1 | B1 | C1 | D1 |
| ≤ 20% | A2 | B2 | C2 | D2 | |
| ≤ 40% | A3 | B3 | C3 | D3 | |
| > 40% | A4 | B4 | C4 | D4 | |
The Eurosystem may temporarily accept as eligible collateral non-compliant transactions on a case-by-case basis and subject to the provision of adequate explanations regarding the reason for the failure to achieve the mandatory score. These explanations are to be given using a standardised explanation form (to be provided viaeligible-assets.hotline@ecb.europa.eu). For each adequate explanation the Eurosystem will specify a maximum tolerance level and a tolerance horizon. The tolerance horizon indicates that data quality must improve within the specified time period.
The full list of adequate explanations is provided in the overview below, along with the corresponding tolerance levels and tolerance horizons. This overview is subject to revision at the Eurosystem’s discretion.
Legacy assets
Legacy assets refer to assets with missing data for a limited number of mandatory fields.
- Tolerance horizon
Long term
No precise deadline possible; quantitative criteria will be regularly re-assessed to encourage compliance- Tolerance threshold
Number of legacy assets ≤ 7% of all the active loans in the transaction, and
Number of mandatory fields not filled with data across all the legacy assets ≤ 7- Additional qualitative criteria
Comply or explain approach will continue to apply until the issue is deemed resolved by the Eurosystem
Legacy IT systems
The loan originator’s IT systems do not store a small amount of mandatory data.
- Tolerance horizon
Long term
No precise deadline possible; quantitative criteria will be regularly re-assessed to encourage compliance- Tolerance threshold
Number of mandatory fields not filled with data across all the loans ≤ 3
- Additional qualitative criteria
Comply or explain approach will continue to apply until the issue is deemed resolved by the Eurosystem
Not integrated IT systems
Data not reported because the required data are stored in different systems that cannot easily be consolidated (such as due to recent bank mergers).
- Tolerance horizon
Long term
No precise deadline possible; quantitative criteria will be regularly re-assessed to encourage compliance- Tolerance threshold
Number of mandatory fields not filled with data across all the loans ≤ 5
- Additional qualitative criteria
Comply or explain approach will continue to apply until the issue is deemed resolved by the Eurosystem