repayment_type

The repayment_type property describes the repayment conditions of the loan. In short, the repayment type determines the contractual agreement the lender has made with the borrower regarding repayments:

Loan

├── combined
├── interest_only
├── option_arm
├── other
└── repayment

interest_only

The borrower will be meeting the accrued_interest amounts but not reducing the balance of the loan.

repayment

The borrower will be paying the interest as well as the capital in an amortising manner such that the balance amount will be decreasing to zero over the life of the loan.

combined

The borrower’s repayment terms of the loan are a combination of repayment and interest_only. For example, the borrower typically has a repayment schedule but has an interest_only schedule during the summer.

option_arm

A payment Option ARM is a nontraditional mortgage that allows the borrower to choose from a number of different payment options. For example, each month, the borrower may choose: a minimum payment option based on a ‘’start’’ or introductory interest rate, an interest-only payment option based on the fully indexed interest rate, or a fully amortizing principal and interest payment option based on a 15-year or 30-year loan term, plus any required escrow payments. Payments on the minimum payment option can be less than the interest accruing on the loan, resulting in negative amortization. The interest-only option avoids negative amortization, but does not provide for principal amortization. After a specified number of years, or if the loan reaches a certain negative amortization cap, the required monthly payment amount is recast to require payments that will fully amortize the outstanding balance. Refer to Federal Reserve FR Y-14M.

other

The contractual terms do not specify a repayment_type and the borrower is free to pay the interest and/or capital on their own schedule. Credit cards and other credit facilities might have repayment_type = “other” characteristics. We use “other” here instead of “none” as it is assumed all loans are made under the premise of repayment.

Security

├── other
├── pr2s
├── pr2s_abcp
├── pr2s_non_abcp
├── pro_rata
└── sequential

sequential

Sequential amortisation

pro_rata

Pro-rata amortisation

pr2s

Pro-rata amortisation changing to sequential amortisation. Not compliant

pr2s_abcp

Pro-rata amortisation changing to sequential amortisation. Compliant with STS criteria for on-balance sheet securitisations (Article 26c (5) of Regulation (EU) 2017/2402).

pr2s_non_abcp

Pro-rata amortisation changing to sequential amortisation. Compliant with STS criteria for non-ABCP transactions (Guidelines on STS criteria for non-ABCP transactions and Article 21 (5) of Regulation (EU) 2017/2402

other

Other amortisation system

See: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02017R2402-20210409#:~:text=Losses%20shall%20be,forward%2Dlooking%20trigger.