Portfolio RBNZ Categories

Portfolio RBNZ Categories

Concept

An export process can be completed to populate Section 3.1 of the RBNZ NBDT Prudential Monitoring Survey.

In order for this to calculate and populate correctly, some consideration must be given to the way that the portfolio and account relationship is managed.

Setup

Portfolios managed at the Account Level

Validation Rules

Every applicable loan account must have a Portfolio with a valid RBNZ combination (see the “Invalid Accounts Indentified” section below for further details, 
OR
The loan account must have the exclude from LVR calculation flag checked on.

Portfolios managed at the Client Level

Basic Validation Rules

Every Client associated with a loan account must have at least one Portfolio record with a valid RBNZ combination (see Invalid Accounts Identified section below).
OR
Every loan account associated with the client must have the exclude from LVR calculation flag checked on.

Client with Single Account and a Single Portfolio item

  1. No additional rules. A one to one relationship exists

Client with Multiple Accounts and a Single Portfolio item

  1. The portfolio should not have an account specified

Client with a Single Account and a Multiple Portfolio items

If the Portfolios belong to the same RBNZ category and security type:
  1. no portfolio item should have an account specified
If the Portfolios belong to different RBNZ category and security types:
  1. the export process will include this loan in both categories, therefore a manual adjustment to the export will be required as both the record count and loan value will have been reported twice

Client with a Multiple Accounts and a Multiple Portfolio items

If all the Portfolios belong to the same RBNZ category and security type 

  1. no portfolio item should have an account specified

If any Portfolio belongs to different RBNZ category and security type

  1. Each Portfolio that belongs to a unique category and security type should have an account selected

If there are two or more portfolio in the same category and security type, these should not have an account relationship applied.  All portfolio details will be added together and used in the LVR calculation against all non-associated accounts.

Example

Client A has 3 loan accounts (Loan A, Loan B and Loan C) and has the below portfolio items:

Portfolio
RBNZ Category
Portfolio A
Agriculture / First Mortgage
Portfolio B
Agriculture / PPSR Charge
Portfolio C
Agriculture / PPSR Charge

The required setup would be:  

Portfolio
RBNZ Category
Account
Portfolio A
Agriculture / First Mortgage
Loan A
Portfolio B
Agriculture / PPSR Charge
Associated Account blank
Portfolio C
Agriculture / PPSR Charge
Associated Account blank

The export will then use Loan A and Portfolio A for the Agriculture / First Mortgage sector calculation.

Portfolio B and C valuations will be totalled and used for the LVR calculation for the Agriculture / PPSR sector.

Invalid set up scenarios

The following scenarios will result in incorrect information being exported:

One account, multiple portfolios, each portfolio assigned to a different RBNZ sector.  The account will be repeated on the export for each portfolio item overstating the number of accounts and loan amounts.  This scenario cannot be catered for so the RBNZ export will need to be manually adjusted to have only one loan account represented.

There are more portfolio items than there are accounts and each account is assigned to a portfolio.  The unassigned portfolios will be ignored in any LVR calculations so the loan may end up in the wrong RBNZ sector bucket.  To overcome this, un-attach one account from a portfolio.  The extra portfolio(s) will then be included in the LVR calculation for the unattached account.

Possible Combinations

Not all RBNZ Security Types can be paired with each category. The valid combinations are detailed below:

SubsectionRBNZ CategoryRBNZ Security Type
3.1.1.1
Agriculture / Farming
1st Mortgage
3.1.1.2Agriculture / Farming1st Mortgage
3.1.1.3
Agriculture / Farming
Other Mortgage
3.1.1.4
Agriculture / Farming
PPSR Charge over [rural] "qualifying moveable machinery"
3.1.1.5
Agriculture / Farming
PPSR Charge over [rural] "qualifying moveable machinery"
3.1.1.6
Agriculture / Farming
Other Security
3.1.1.7
Agriculture / Farming
Unsecured
3.1.2.1
Property Development
1st Mortgage
3.1.2.2
Property Development
1st Mortgage
3.1.2.3
Property Development
Other Mortgage
3.1.3.1
Other Property
1st Mortgage
3.1.3.2
Other Property
1st Mortgage
3.1.33
Other Property
Other Mortgage
3.1.4.1
Commercial
PPSR Charge over [rural] "qualifying moveable machinery"
3.1.4.2
Commercial
PPSR Charge over [rural] "qualifying moveable machinery"
3.1.4.3
Commercial
Other Security
3.1.4.4
Commercial
Unsecured
3.1.5.1
Residential Mortgages
1st Mortgage
3.1.5.2
Residential Mortgages
1st Mortgage
3.1.5.3
Residential Mortgages
1st Mortgage
3.1.5.4
Residential Mortgages
1st Mortgage
3.1.5.5
Residential Mortgages
1st Mortgage
3.1.5.6
Residential Mortgages
Other Mortgage
3.1.5.7
Residential Mortgages
Mortgage Secured by HNZC
3.1.6.1
Consumer Loans - to Individuals < $40,000
PPSR charge over motor vehicle/boat
3.1.6.2
Consumer Loans - to Individuals < $40,000
PPSR charge over any other asset
3.1.6.3
Consumer Loans - to Individuals < $40,000
Other Security
3.1.6.4
Consumer Loans - to Individuals < $40,000
Unsecured
3.1.7.1
All Other Loans
PPSR charge over motor vehicle/boat
3.1.7.2
All Other Loans
PPSR charge over motor vehicle/boat
3.1.7.3
All Other Loans
PPSR charge over any other asset
3.1.7.4
All Other Loans
Other Security
3.1.7.5
All Other Loans
Unsecured

Invalid Accounts Identified

If an “invalid accounts were identified” message is received during the export process, these accounts must be corrected before the export will proceed.

Click [Save] to create a .csv file of each record that needs to be remediated.

The id number is the Portfolio number, which cannot be searched.

The below SQL Select script can be used in the SQL runner to identify the client number or account number associated with the portfolio id:

______________________________________________________________________________

select id as PortfolioNumber, CliNum as ClientNumber, AccNum as AccountNumber from accportfolio

______________________________________________________________________________

Access each portfolio (either through the client or account) that has been identified as invalid and correct.

The issue will be one of the following:

Issue
Resolution
No Portfolio record is associated with account or the account/client

[Add] a portfolio record and select the RBNZ Category and Security Type

OR

Check on the ‘Exclude from LVR’ flag on the account

The RBNZ Category and Security Type  is not selected to an existing portfolio record

Select the Category and Security Type
The RBNZ Category and Security Type is not a valid combination

Re-select the Category and Security Type using a valid combination (see table above)

Resolve these for each portfolio identified and then re-run the export process.



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