EUROPEAN MORTGAGE FEDERATIONANNUAL REPORT ACTIVITIES 2011

EMF activ

ities

2011

ANNUAL REPORT

Established in 1967, the European Mortgage Federation (EMF) is an international non-profit institution under Belgian Law (AISBL), representing the interests of mortgage lenders and covered bond issuers at European level. The EMF represents a growing industry worth €6.4 trillion as at the end of 2010, which is approximately 52.4% of the EU’s GDP.In 2004, the Federation established the European Covered Bond Council (ECBC), which promotes covereds bonds and represents stakeholders from Europe and around the world.

The Secretariat, a team of 12 people based in Brussels, co-ordinates the activities of the Federation and maintains contact with the European Institutions.

European Mortgage Federation

Avenue de Cortenbergh 71B-1000 Brussels Belgium

The entire contents of this publication are protected by copy-right. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any other form or by any means: electronic, mechanical, photocopy-ing, recording or otherwise without the prior permission of the European Mortgage Federation.

Contents

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FOREWORD ............................................................................................................................................................................4

2011 IN STATISTICS .....................................................................................................................................................5

STRATEGY & POLICY ISSUES ..............................................................................................................................7

Credit Agreements Relating to Residential Property .........................................................................8

Capital Requirements Directive .........................................................................................................................10

Property Valuation in the EU .................................................................................................................................12

EUROPEAN COVERED BOND COUNCIL (ECBC) ...............................................................................13

STATISTICS & DATA ...................................................................................................................................................16

New Publications in 2011 ......................................................................................................................................17

Other Publications .........................................................................................................................................................19

EXTERNAL RELATIONS ...........................................................................................................................................20

Ongoing Dialogues ........................................................................................................................................................21

Adding Value for Members ....................................................................................................................................22

EMF Members ...................................................................................................................................................................23

ECBC Members ................................................................................................................................................................26

Committee Members and Staff ...........................................................................................................................27

Secretariat ............................................................................................................................................................................32

2011 has been characterised by a slowdown in recovery, shrouding European mortgage markets in an air of uncer-tainty which continues to hamper our ability to predict how, and at what speed this trend will reverse. However, 2011 has also seen an acceleration in the adoption procedures for the Proposals for a Directive for Credit Agreements Relating to Residential Property (CARRP) and CRD IV. As an Industry, we are keen to contribute to making sure that the ongoing regulatory changes meet their objectives, whilst at the same time striking the right balance between strengthening the stability of the financial sector and allowing it to continue delivering its much-needed services; both being aspects which are expected to drive forward the recovery of the European economy.

Looking at the performances of individual mortgage mar-kets from Member States during 2011 reveals a mixed picture, as has already been observed in recent years. On one hand, a group of markets recorded positive develop-ments both in new mortgage lending and in house prices: this can be said for Sweden, France, Belgium and Austria. A second group, however, where mortgage and housing markets have not yet recovered from the crisis can also be identified. Ireland, the Baltic countries, Greece, Hungary and Spain (although to a lesser extent) – saw their housing markets severely affected by the harsh correction from the peaks of the last housing cycle (in some cases evidenced by a peak-to-trough fall of more than 15% - 20% in house prices in nominal terms).

Although expansionary monetary policies (which played a key role in supporting markets’ recovery during 2009 and 2010) should provide support to mortgage demand in the forthcoming quarters, the outlook for mortgage mar-kets remains uncertain as the peaks and troughs of recent years are unprecedented. After a positive performance up to and including Q3 2010, Q4 saw mortgage markets slow-ing down in most Member States, resulting in an eased recovery in the above-mentioned first group of countries and in continued mortgage and housing recession in the latter. In addition, monetary tightening in the EU (despite reversing sharply in the second half of 2011), and the deep-ening sovereign debt crisis further impacted on confidence, therefore dampening consumers’ demand and increasing lenders’ caution.

What we see therefore for 2012 remains a mixed and un-certain picture. A lack of visibility makes any future trends very difficult to foresee, however, it would come as a sur-prise if the high growth rates that were recorded before the crisis make a comeback anytime soon.

The Covered Bond Industry, however, continued its strong and stable performance in 2011, helping maintain the EU economy as well as a certain level of market confidence. The launch of the ECB’s second Covered Bond Purchase Programme in October sent a strong signal as to the confidence placed in the asset class’ ability to perform con-sistently well in the current economic climate. The growing worldwide appetite for covered bond legislation includes Australia, Brazil, Canada, Japan, Mexico, South Korea and

the US – and with Australia, Canada and the US steadily advancing in the legislative process – both regulators and supervisors are becoming increasingly aware of the ad-vantages of covered bonds in terms of quality, security and therefore resilience, as evidenced in the EU.

To further enhance the performance of the asset class, the covered bond community is committed to developing a quality label for covered bonds. Indeed, this initiative is intended to result in multiple benefits with an enhancement of the overall recognition of and trust in the asset class. The ECBC Label Initiative is intended to facilitate access to relevant and comprehensive information for investors, regu-lators and other market participants. This demonstrates the determination of the covered bond community to tackle the challenges arising from the crisis and its active engagement in the maintenance of the high quality of the collateral as-sets, the improvement of transparency, and eventually, the promotion of liquidity, and the strengthening of secondary market activity.

Within this context, it is essential that the regulation which we are now facing takes into account these diverse performanc-es of the credit, house prices and covered bond markets, and the relative growth that they have seen in challenging times. Against this background, the two Proposals published in 2011 were met with a mixed reaction by the Industry.

Whilst the initial Proposal for CRD IV brought about huge causes of concern, the subsequent discussions with regu-lators have reassured the Industry and we have been encouraged by their affirmation that European market specificities will be given due consideration. Some of our concerns, however, do still remain on issues which have been consistently flagged by the Industry as potential ob-stacles to growth, most importantly the risk-weightings for mortgage credit, the liquidity ratio especially in relation to the rules governing the eligibility of covered bonds, and the calibration of the leverage ratio. With the final limits yet to be set, we look forward to continuing our constructive work with the European Commission, Parliament, Council and of course, the European Banking Authority, to ensure that the new proposals are adequately adjusted to European mortgage markets, taking into account their diversity and helping to retain European competitiveness at a global level.

On the retail side, the publication of the CARRP Proposal also provided us with cause for concern, which was not alleviated by the significant widening of its scope as pro-posed by the European Parliament’s ECON Rapporteur. Amongst the most sensitive issues under debate are : (i) the introduction of a duty to deny credit in the event of a negative creditworthiness assessment, a duty to provide the consumer with the reasons for rejection and a “suitability” assessment, (ii) the definition of the APRC, (iii) proposals in respect of early repayment and (iv) the use of delegated acts. As with CRD IV, our over-arching concern in respect of the Commission’s Proposal is that it would result in a sig-nificant increase in the cost of credit, and therefore restrict lenders’ ability to lend, with the consumer facing increased costs and a limited range of offers. With all of this having

Peter Engberg Jensen

President

European Mortgage

Federation

Group Chief Executive

Nykredit

Foreword

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Foreword

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30

25

20

15

10

5

0

-5

-10

Pola

nd

Rom

ania

Fran

ce

Belg

ium

Hung

ary

Swed

en

Neth

erla

nds

Germ

any

Denm

ark

Portu

gal

UK

Spai

n

Gree

ce

Irela

nd

Total Outstanding Residential Lending, year-on-year growth rates, Q3 2011, %

Source: EMFNote: these figures were calculated on values expressed in national currencies

Source: EMFNote: these figures were calculated on values expressed in national currencies

Gross Residential Mortgage Lending, Q1 to Q3 2011 compared to Q1 to Q3 quarters 2010, %

20

10

0

-10

-20

-30

-40

-50

-60

Fran

ce

Belg

ium

Hung

ary

Swed

en

Germ

any

Denm

ark

Portu

gal

UK

Spai

n

Italy

Source: EMF

Nominal House Prices, year-on-year growth rates, Q3 2011, %

France

Belgium

Germany

Sweden

Portugal

UK

Hungary

Netherlands

Greece

Spain

Denmark

Ireland

-20 -10 0-15 -5 5 10

been said, however, we remain optimistic that the current passage of the Proposal through the European Parliament and the European Council will result in these concerns being taken into account.

Nonetheless, the prospect we are facing with both the CRD IV and CARRP Proposals is – to a greater or lesser extent – restricted, more expensive credit to fewer borrowers.

Furthermore, in addressing the different areas of regulation, we are risking a cumulative impact which cannot be measured as of yet. Although aware-

ness of this potential obstacle has been recognised at regulatory level, this does not seem to have led the authorities to reassess the opportunity to move forward with the current regulations.

Even throughout the recent economic turmoil, the mortgage Industry has remained a key driver of the European economy, and whilst we recognise the benefits of increased harmonisation to promote competition and re-move borders, it should not be impeded in this role by the swift introduction of restrictive legislation which does not appropriately consider the different characteristics of EU mortgage markets.

2011 IN STATISTICS

STRATEGY& POLICY

ISSUES

STRATEGY& POLICY

ISSUES

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At long last...2011 was the year when EU legislative action finally got underway in the field of mortgage credit, and it did so with a vengeance. After nearly 10 years of focus on EU mortgage markets, the Commission published a Proposal for a Directive on Credit Agreements relating to Residential Property (CARRP) on the 31st of March 2011. The contents of the Proposal came as no great surprise to the Industry, with one exception being the last-minute addition of a provision on early repayment due to political pressure from Cabinet level in the Commission. This issue had, right up until the publication of the Proposal, been considered “off limit” for the Commission in light of the very complex and sensitive nature of the issue.

The Industry had long been sceptical about the existence of a business case for this kind of Proposal at this particular time and therefore eagerly awaited the publication of the Impact Assessment to see if its assertions had been correct. The scepticism was well founded - the Impact Assessment was light and did not make a strong case for legislative intervention.

Something which the Industry had not anticipated was the overuse - and indeed misuse - of delegated acts in the Proposal, which renders the Proposal akin to a framework Directive and, in doing so, seriously undermines business certainty. Consistent lobbying by the Industry in this area has convinced the Council and, to some extent, the European Parliament of the risks of delegated acts, but their removal remains a key point on our agenda.

On the 5th of May 2011, the EMF wrote to the European Parliament’s ECON Rapporteur for the file, Antolin Sánchez Presedo (S&D, ES), outlining its views on the Commission’s Proposal with a view to in-forming Mr Presedo’s draft Report for the Committee. In addition to the Industry’s concerns mentioned above, the position highlighted other key issues including: (i) the introduction of a duty to deny and a “suitability” assessment, which would result in increased lender liability, a greater risk of litigation and ultimately in consumer ex-

clusion, (ii) the introduction of a duty to inform the consumer of the reasons for rejection, which could lead some consumers to “game the system”, (iii) the use of the wide total cost of credit definition instead of a narrow APRC, which prevents comparability of offers; and (iv) the provisions on early repayment, which, depending on Member States’ interpretation, could completely undermine long-established and well-functioning mortgage systems.

CREDIT AGREEMENTS RELATING TO RESIDENTIAL PROPERTY

Key events

26 January 2011 European Parliament Workshop on Responsible Lending and Borrowing

31 March 2011 Commission publishes its Proposal for a Directive on Credit Agreements Relating to Residential Property (CARRP)

5 May 2011 EMF publishes its Position Paper on the CARRP, endorsed by the European Banking Industry Committee (EBIC)

18 July 2011 EP’s ECON Rapporteur Antolín Sánchez Presedo publishes his draft Report

29 September 2011 EP’s IMCO Shadow Rapporteur Kurt Lechner publishes his draft Report

Strategy & Policy Issues

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Strategy & Policy Issues

Early 2011 in the European ParliamentWith his appointment as Rapporteur by the Parliament’s ECON Committee in November 2010, Mr Antolín Sánchez Presedo wast-ed no time and arranged a Workshop on Responsible Lending as early as January 2011. It was clear that he wanted to get going on the file and was not prepared to wait for the Commission to publish its Proposal. He invited a diverse range of stakeholders from Industry, Consumers and Regulators alike to present at the Workshop, including two of the EMF’s experts, Mr Alain Gourio and Mr Enrico Granata. What emerged from the event and the preparatory documentation circulated beforehand was that the EP was likely to “cast its net” much wider than the Commission and that it had a number of detailed questions – which only increased after the Workshop.

Mid-2011 – ECON in the spotlightIt took until mid-July for the EP’s ECON and IMCO Committees to determine their respective areas of competence for the file, with some exclusive and some shared, during which time the EMF set to work on preparing a set of amendments to the Proposal itself. Eventually, on the 18th of July 2011, Mr Sanchez Presedo published his draft Report, comprising 200 amendments to the Commission’s Proposal. As the Industry had anticipated, the Rapporteur had “cast his net wide” in his draft Report, but what it couldn’t have an-ticipated was exactly how wide. The Rapporteur’s draft Report did not just amend the Commission’s Proposal, but completely over-hauled it: (i) Existing provisions in the Commission Proposal were substantially amended, most notably through a move away from the principles-based approach to a prescriptive approach, e.g. in relation to creditworthiness assessment and early repayment; (ii) A number of new provisions focusing on flexibility for consumers in the operation of their mortgages was inserted; (iii) The Proposal was extended into areas purposely left aside by the Commission, i.e. arrears and foreclosure and property valuation; and (iv) The objective of the Proposal was extended to financial stability and, as such, included new prudential requirements.

With the publication of the draft ECON Report, the Industry sprung back into action, preparing an extensive position paper for ECON and IMCO MEPs, which was subsequently endorsed by the EBIC Working Group on Mortgage Credit, and finalising its proposals for amendments to the Commission’s Proposal.

Industry amendments strike a chordThe EMF provided its comprehensive proposals for amendments to MEPs of the ECON Committee in advance of the MEP tabling deadline of the 30th of September 2011. To everyone’s satisfaction, the EMF’s amendments featured prominently in the resulting set of some 600 amendments tabled by ECON MEPs. In parallel to this, the EMF was holding regular meetings with the relevant members of the IMCO Committee and, under the guidance of the Rapporteur, Mr Kurt Lechner (EPP, DE), who published his draft Opinion for IMCO at the end of September 2011, the signs were there that IMCO MEPs understood and, to a large extent, were in agreement with the Industry position in a number of areas.

By the end of 2011, consensus in the EP was starting to emerge amongst a number of Political Groups and preferences along Member States’ lines were also discernible. Despite one or two anomalies,

as one year ended and a new one began the Industry’s position re-mained, and continues to remain, strong in the European Parliament.

This was reflected in the outcome of the vote in IMCO which took place, as planned, on the 25th of January 2012. With some excep-tions relating to the provision on early repayment, the introduction of a withdrawal right and the rules on consumer disclosure, the Rapporteur achieved a very sensible result with MEPs voting down not only the duty to deny, the duty to inform the consumer of the reasons for rejection and the “suitability test”, but also a majority of delegated acts.

This is, of course, only half the story, with ECON still seeking agreement on compromise amendments ahead of a vote in the Committee scheduled for the 24th/25th of April 2012. Exactly how the ECON vote will shape up is, at the time of writing, very diffi-cult to say, with marked divergences in views between Committee Members. What is reassuring for the Industry is that the ECON Shadow Rapporteurs are extremely engaged in the file and a number of meetings are planned between the Rapporteur and the Shadows in the coming weeks to reach a consensus.

Progress in the European CouncilThe Hungarian Presidency had the privilege of having the first crack at the CARRP file and certain progress was made; however, July 2011 and the hand-over to the Polish Presidency arrived quickly. While initially all of the indications were that the Polish would not prioritise this file, events over the summer saw that attitude change and resulted in no less than 10 compromise texts being published by the Presidency between July and December. By the end of 2011, this feverish activity had produced a text which remains aligned to a large extent with the Commission’s Proposal, but in doing so treads a different path from what is likely to emerge from the Parliament, at least from the ECON Committee.

In January 2012, when the Danes took over the Presidency of the EU, the Polish Presidency handed over the file with “an agreement reached, or at least a significant convergence of views on most parts of the text”. There were a number of positive signs for the Industry, not least of which being the Council’s disapproval of the use of delegated acts and its more cautious approach to the duty to deny credit. However, disappointingly for the Industry, the Council favours the introduction of a prescribed set of competence requirements for lenders and provides for a discretionary duty to advise. The Danish Presidency is currently working on the file and, with the exception of a small number of issues which still need to be ironed out, the Council will apparently soon have its position ready to go.

Moving forward The divergence of views emerging between the Council and the European Parliament on issues such as competence requirements, the duty to deny credit, advice and early repayment for example, means that the Trilogue negotiations between the Commission, the EP and the Council will be key to this Directive. Whether or not these will be concluded during 2012 and how they turn out remain anybody’s guess, but one thing is sure, the coming months will be interesting ones!

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Strategy & Policy Issues

CAPITAL REQUIREMENTS DIRECTIVE

As a result of the crisis, one of the global level policy responses was the Basel III Framework, published by the Basel Committee in December 2010. Covering key issues such as capital requirements, liquidity standards, and the leverage ratio, the Basel Proposals lie at the core of the mortgage business.

In July 2011, the European Commission published the CRD IV Proposal, which seeks to transpose the Basel III Framework into EU legislation and to strengthen and stabilise the wider banking system. CRD IV consists of a Regulation (CRR) establishing the prudential requirements for individual institutions and a Directive (CRD) governing access to deposit taking activities.

The Commission has framed its Proposal with a view to allowing a degree of flexibility in the transposition of the Basel III Agreement, which has been welcomed by the mortgage credit industry as it fully supports the goal of CRD IV to reinforce the resilience of the banking sector. However, while the Basel rules are sound in prin-ciple, they are not always suitably tailored to European models nor do they take into account the specific nature of the European mort-gage market and a number of the measures advocated by the Basel rules could have serious implications for the mortgage industry in the EU – severely constraining the ability of some lenders to lend.

At the same time, they may also impose considerable costs on the broader economy and restrict consumers’ access to mortgages. According to ECB research, in the euro area, a 5% decline in credit growth leads to a 0.4% decline in GDP in the short-run, rising to a 1.6% decline in the medium-term.

Additionally, the EMF fears that the combined impact of the Commission’s proposals will have a destabilising procyclical im-pact on mortgage markets, nullifying some of the stability goals introduced by CRD IV such as the counter-cyclical buffer.

Therefore, the EMF is working to put forward constructive im-provements to the Commission’s CRD IV Proposal concerning the treatment of mortgages, the leverage ratio and liquidity.

In its November 2011 Position Paper, the EMF recommended meas-ures which would help to ensure all lenders retain the ability to lend:

n The combined impact of changes to the treatment of mort-gages (revision of mortgage risk weights based on loss data, the LGD floor for residential mortgages and changes to the definition of default) will have a procyclical effect and reduce the availabil-ity of lending, with negative consequences for both consumers and real growth.

n The current leverage ratio does not take into account the specificities of the European mortgage credit industry, which is typically based on low-risk and long-maturity activities. As such, it is likely to encourage a shift towards riskier and more expensive mortgage lending as well as jeopardise the existence of some long-standing business models, without any obvious benefits in terms of stability or resilience; therefore, the EMF calls for a full review of the potential impact of the leverage ratio on mortgage lending and strongly recommends that any even-tual leverage ratio be implemented as a supervisory measure.

n The liquidity proposals as they currently stand do not address the specificities of European covered bonds, which play an es-sential role in the funding of mortgages across Europe.

The final quarter of 2011 saw the first debates on CRD IV in the European Parliament and Council, discussions that will continue to dominate the agenda in 2012.

In December 2011, the European Parliament’s (EP) Economic and Monetary Affairs Committee’s (ECON) Rapporteur, Mr Othmar Karas MEP, published his draft Report on CRD IV. Mr Karas is committed to the Single Rule Book and the principle of “maximum harmoni-sation”, therefore being opposed to gold-plating, front running or the implementation of divergent rules at Member State level. The EMF submitted a Position Paper to the EP providing constructive proposals to ensure that CRD IV reinforces the resilience of the banking sector, an objective that forms an essential component of the mortgage credit industry’s ability to continue to fulfil its essen-tial role in sustaining the economic recovery and providing wider access to housing in Europe. This work is currently being followed up and evidence is being gathered to support this.

Discussions on CRD IV are progressing at Council level. On the 6th of January 2012, the Danish Presidency published a first Presidency

In autumn 2011, the EMF started to investigate the issues of over-reliance on ratings and the change in credit rating agencies’ (CRAs) role since the crisis. The outcome of this investigation was that in the short-term it would be difficult to replace external ratings, with no obvious alternatives being identifiable. There is, however, some scope for improvements within the existing CRA landscape, particularly in terms of improving CRA transparency, rating models and methodologies. Increased competition and improved commu-nication policies would also be beneficial.

It was also noted that problems continue to stem from the ongoing regulatory reliance on ratings, for example, via cliff effects, where a small rating change can trigger a substantially different regulatory treatment, which can negatively impact on financial stability and create considerable market disruption way beyond the level of change that would be expected from a minor change in a rating.

The results of this investigation have also been used to guide EMF views on the Commission’s Proposal for regulating the CRAs (known as CRA III). CRA III proposes the introduction of mandatory rotation for CRAs, similar to the approach used in the audit industry. However, the two sectors are very different and rotation is likely to lead to an increase in costs for issuers, increased rating volatility without necessarily helping the goals of reducing CRA conflicts of interest and increasing competition amongst the CRAs to be met. The EMF has also prepared a Position Paper on CRA III and held detailed technical discussions with the Commission, ESMA and the rating agencies.

Credit Rating Agencies

Strategy & Policy Issues

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“ According to ECB research, in the euro area, a 5% decline in credit growth leads to a 0.4% decline in GDP in the short-run, rising to a 1.6% decline in the medium-term.””

Compromise Text with the aim of stimulating progress and reaching a final Compromise Position later in the spring. The mortgage credit industry will closely follow key political debates on issues such as the level of harmonisation, early Member State implementation of Basel III rules and how closely the final rules follow the Single Rule Book approach.

In parallel to the EU Institutions' work on CRD IV, the Basel Committee is also actively reviewing elements of the Basel III Framework, including the definition of liquid assets eligible for use in the LCR and the LCR’s technical parameters.

There are also a series of other EU legislative proposals that will directly impact European mortgage lenders activities such as the forthcoming Crisis Management Framework, the Financial Transaction Tax, the Deposit Guarantee Scheme and further regula-tion of credit rating agencies (CRA III). The EMF is actively following these files though it is difficult at this stage to analyse their pos-sible combined impact on the changing regulatory landscape for the mortgage industry.

The earliest date for CRD IV to be formally adopted is the summer of 2012, though given the complexity of the dossier, there is al-ways scope for delay. Starting in 2012 and continuing over several years, the European Banking Authority (EBA) has been tasked with defining many of the technical parameters and calibrations for the practical implementation of CRD IV. The EMF has started investiga-tions regarding several issues such as mortgage losses, the LCR and the leverage ratio in order to better understand the impact on mortgage lenders and to provide detailed evidence to contribute towards the final calibrations.

Strategy & Policy Issues

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PROPERTY VALUATION IN THE EU

“Secure mortgage lending starts with confident property valuation”

Confidence in the value of the property is a fundamental pre-condition to mortgage lending. The lender needs to know that in the event of default, the sale of the property will cover repayment of the loan and costs. Accurate and transparent property valuations can go a long way to delivering the certainty required and reducing the additional risks associated with cross-border mortgage lending, leading to greater security on European mortgage markets.

With this in mind, developments at EU level which have an impact on property valuation – either directly or indirectly – command the undi-vided attention of the Industry. Current initiatives at EU level which are on the EMF’s agenda include the following:

The ‘Mortgage Credit’ Directive

That the European Parliament’s ECON Rapporteur would ‘cast his net wide’ in his draft Report was anticipated; that he would include in his ‘net’ a very detailed Article on property valuation came not necessar-ily as a surprise, but definitely as an unwelcome departure from the Commission’s original Proposal for a Directive on Credit Agreements Relating to Residential Property (CARRP) published in March 2011. In fact, after several years of investigation, the Commission had, for its part, concluded that the technical nature of property valuation and the divergences between markets in terms of the way the profession is organised and practiced, meant that it was inappropriate to legislate in this area at EU level.

We were quick to make our concerns known, and in the September 2011 EMF Position Paper on the draft ECON Report, we outlined the Industry’s opposition in detail. Overlaps with the property valuation-related provisions in the CRD, ambiguities with regard to valuer independence and the role of internal valuers in the process, and the introduction of a requirement that Member States establish a reg-ister of professional valuers, left the Industry unable to recommend anything other than the deletion of this new Article in its entirety, par-ticularly in the absence of an impact assessment.

Whether or not the Article on property valuation will ultimately stay in the draft ECON Report remains, at the time of writing, to be seen. What is even less clear is how this inclusion will fare in ‘Trilogue’ discussions between the EP, Commission and Council. What, how-ever, is sure is that the EMF will continue to monitor developments in this area and will remain in close contact with relevant stakehold-ers in the EP for as long as is necessary.

Property valuation in the CRD IV

Property valuation plays a key role in the context of banks’ capital adequacy and, therefore, there are property valuation-related provi-sions aplenty in the Capital Requirements Directive. The focus of the EMF’s Valuation Committee in this area has, since the adoption of the CRD III, been on the way in which national regulators have interpreted

and implemented the property valuation-related provisions. Since the publication of CRD IV, the Committee’s focus has shifted to this new text, although, to all intents and purposes, the relevant provisions re-main largely unchanged.

Wider valuation issues

Beyond policy initiatives at EU level, the EMF’s Valuation Committee also focuses on the exchange of information and best practice, the importance of which has been cemented since the onset of the crisis in 2008. In their May and October 2011 meetings, the EMF’s valuation experts examined key issues such as accuracy and transparency in property valuation and the impact of energy performance of buildings on property valuation. Cooperation has also been ongoing with repre-sentatives from TEGoVA, the European Group of Valuers’ Associations, and RICS, the Royal Institution of Chartered Surveyors, as well as with other national valuation organisations. Such exchanges are vital to ensuring transparency and understanding on a cross-border basis and to presenting a united front at EU level in relation to the profes-sion, from both a user (lender) and provider (valuer) perspective, and will therefore continue to be an EMF priority into the future.

Looking into 2012

Looking ahead into 2012, the EMF will continue to follow closely property valuation-related developments in the Commission’s CARRP Proposal and also in the context of the review of the CRD, where ap-propriate. The use of valuation technology e.g. AVMs will once again feature on the agenda, building on work carried out by the Committee before the crisis. 2012 will also see a revision of the Study on the Valuation of Property for Lending Purposes.

EUROPEANCOVERED

BONDCOUNCIL

European Covered Bond Council (ECBC)

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ECBC AS THE INDUSTRY THINK TANK

10 Working Group meetings were organised in 2011 with over 120 experts addressing key issues for covered bond markets:

European Legislation Working Group

Technical Issues Working Group

Statistics and Data Working Group

Market Related Issues Working Group

Covered Bond Fact Book Working Group

Rating Agency Approaches Working Group

THE KEY COVERED BOND NETWORKING PLATFORM IN 2011

Two Plenary meetings took place, gathering more than 200 par-ticipants each including key decision makers from the covered bond industry, issuers, investors, government & regulatory offi-cials at both national and EU level, rating agencies and journalists from over 32 covered bond jurisdictions. See the video of the September 2011 Plenary by visiting www.ecbc.hypo.org!

Regular meetings were held with national, European and world-wide authorities such as the European Commission, European Parliament, European Banking Authority, European Securities and Markets Authority, European Central Bank, International Monetary Fund and World Bank.

“ The ECBC Label Initiative demonstrates the determination of the covered bond community to tackle the challenges arising from the crisis and its active engagement in the maintenance of the high quality of the collateral assets, the improvement of transparency, and eventually, the promotion of liquidity, and strengthening of secondary market activity.”Antonio Torío, ECBC Chairman 2010-2011; Director, Capital markets Funding, Banco Santander

European Covered Bond Council (ECBC)

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COVERED BOND TRANSPARENCY THROUGH ECBC PUBLICATIONS

Fact Book 2011: 15 in-depth articles on the asset class, 33 country descriptions, 80 authors involved and a unique source of covered bond statistics with a complete set of figures from 26 covered bond jurisdictions.

ECBC Database: a new interactive database presenting 39 differ-ent covered bond frameworks (www.ecbc.eu).

Mortgage Info: monthly articles on the latest topics affecting the covered bond market.

ECBC COVERED BOND LABEL INITIATIVE

On the 7th of October 2011 the ECBC announced its Label Initiative, which is intended to highlight to investors the value and quality of covered bonds and further enhances the recognition of, and trust in the covered bond asset class.

2012 ECBC MANDATES

Mr Paul O’Connor has been confirmed as the ECBC Chairman for the 2012-13 mandate

Mr Carsten Tirsbæk Madsen has been appointed as the Deputy ECBC Chairman for the 2012-13 mandate

KEY ECBC LOBBYING ACTIONS

The ECBC represents and promotes the interests of covered bond market participants at international level in the following files:

European implementation of Basel III and CRD IV – CB risk weight-ing, transformation of MBS waiver into a general rule, inclusion of CB in Level I for LCR (Liquidity Coverage Ratio), proper treatment of CB in NSFR (Net Stable Funding Rules), etc.

Solvency II, Omnibus II and implementing measures

Resolution regimes at EU and national levels

EMIR – OTC Derivatives

MiFID – Pre- and post- trade price transparency

CRA III – Rotation principle, rating triggers, etc.

Rating Agency Methodologies – Fitch Ratings, Standard and Poor’s, Moody’s and DBRS

iBoxx – Amendment of its index criteria

ECBC Covered Bond Label – Public launch

Transparency Initiatives - Act as catalyst in order to develop National Transparency Templates

ECBC worldwide covered bond advisory role – Australia, Brazil, Morocco, South Korea and United States.

“ The key to covered bonds’ success lies in their simplicity: a classic plain vanilla instrument mostly backed by mortgages and/or public sector assets. Strong supervision and the underlying regulatory and legislative framework which is designed to properly assign collateral in case of resolution is also an important feature.” ” Paul O’Connor, ECBC Chairman 2012-2013; Director, Capital Markets & Risk, Irish Banking Federation.

1,400

1,200

1,000

800

600

400

200

02007

GGB Senior Sub Securisation

EUR

bn e

quiv

alen

t

1,328

943

1,050

892

778

20092008 2010 2011

Bank Issuance 2007-2011

Source: Dealogic, RBS

STATISTICS & DATA

Statistics & Data

NEW PUBLICATIONS IN 2011

Hypostat is a unique, powerful information tool, providing data on housing and mortgage markets across the EU and beyond, combined with in-depth country-focused analyses and macroeconomic information. For the third consecutive year, the publication contains a country report and statistical data on the United States, a key mortgage market but also the scene of the subprime loan crisis which triggered the global credit crisis in the second half of 2008, plus two articles containing detailed analysis on developments in housing markets in the EU’s two largest mortgage markets, i.e. the UK and Germany.

HYPOSTAT 2010

“ A well-established, invaluable asset to understanding today’s market developments.”

“ Annual 2010 statistics reveal that (...) the recovery of the EU aggregate mortgage market in 2010 gained ground and reached a year-on-year increase of 4.9%, following on from a 0.9% expansion in 2009.”

2010 - key findings n Moderate growth in mortgage lending but signs of a levelling off in the second half of

2010: the size of the EU27 mortgage market, as measured by the outstanding volume of residential mortgages, grew by 4.9% to EUR 6.4 trillion in 2010, following on from a 0.9% expansion in 2009. All EU markets recorded positive increases in outstanding lending values in 2010, with the exception of the three Baltic countries, Greece and Ireland. New lending markets recorded increases compared to 2009 but did not return to pre-crisis levels. Countries such as Belgium, France, Germany, Italy, Portugal and Sweden, recorded growth in new lending, whilst there was a moderate decline in new lending in Denmark, Estonia, Spain and the UK and a more pronounced decrease in Ireland, Hungary and Malta.

n Decline in construction moderates: across the EU, the decline in residential construction activity moderated in 2010, but the volumes of activity remained well below pre-1998 levels. Despite four consecutive years of falls in residential construction activity, there is still excess supply in some EU housing markets which suggests that the correction is likely to continue.

n Varied picture for house prices: three broad trends can be identified: vigorous recovery in house prices in Austria, Sweden, France and the UK (albeit with a

clear levelling off in quarterly growth rates in Q3 and Q4 2010; lower growth rates in Belgium, Germany, Italy, Luxembourg and Malta; continued house price recession in Cyprus, Ireland, Hungary, Spain (albeit at lower rates in the latter).

n A continued low interest rate environment: the extremely supportive monetary policy stance of the ECB and other Central Banks since the onset of the financial crisis in Q3 2008 played an important role in stimulating mortgage demand in 2010, as the cuts in policy rates were passed on to mortgage interest rates. Despite some moderate rises which were observed in some markets in Q3 and Q4 2010, interest rates remained very supportive of mortgage demand and low in historical terms, i.e. well below the levels observed in 2007 and 2008 before the onset of the crisis.

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 17

Outstanding residential mortgage debt, EUR million

Annual growth rate in mortgage debt, %

Residential debt to GDP ratio, %Per capita mortgage debt, EUR thousand

Austria 80,000 8.9 28.0 9.55Belgium 163,369 7.7 46.3 15.07Bulgaria 4,453 3.8 12.4 0.59Cyprus 12,033 14.7 68.9 14.98Czech Republic 18,557 4.5 12.8 1.77Denmark 237,313 2.6 101.4 42.88Estonia 5,971 -2.4 41.7 4.46Finland 76,244 6.8 42.3 14.25France 796,600 8.0 41.2 12.31Germany 1,152,195 0.5 46.5 14.09Greece 80,507 -0.2 35.0 7.12Hungary 24,853 12.8 25.2 2.48Ireland 135,806 -8.2 87.1 30.40Italy 352,012 20.9 22.7 5.83Latvia 6,498 -4.6 36.2 2.89Lithuania 5,988 -0.7 21.8 1.80Luxembourg 18,591 8.9 44.7 37.03Malta 2,684 8.6 43.5 6.50Netherlands 629,153 4.6 107.1 38.01Poland 67,669 24.5 19.1 1.77Portugal 114,553 3.5 66.3 10.77Romania 6,769 19.3 5.6 0.32Slovakia 10,863 14.6 16.5 2.00Slovenia 4,837 23.2 13.7 2.36Spain 680,208 0.2 64.0 14.79Sweden 283,666 7.1 81.8 30.37UK 1,442,685 0.4 85.0 23.27EU 27 6,414,079 4.9 52.4 12.9Iceland n/a n/a n/a n/aNorway 219,382 7.7 70.3 45.16 Russia 29,952 12.6 2.7 0.21Turkey 30,560 35.4 5.5 0.42Ukraine 8,778 -11.4 8.5 0.19 USA 8,383,789 -2.7 76.5 27.04

Source: EMF, Eurostat, ECB, National Central Banks, Federal Reserve, Bureau of Economic Analysis

Statistics & Data

18 | EMF ANNUAL REPORT Activities 2011 | www.hypo.org

The Fact Book:

n Provides a comprehensive source of infor-mation, data and overview of the asset class.

n Includes articles on the key themes of the year, including a review of the current European regulatory changes, namely the Commission’s CRD IV and Solvency II pro-posals, an investigation of the work being undertaken by the Basel Committee to ad-dress the capital and liquidity provisions in the Basel III framework, the role of ratings for covered bonds, and an overview of sec-ondary market liquidity and covered bonds from the investor’s perspective.

n rovides detailed information about covered bonds and their main features including ar-

ticles comparing covered bonds with RMBS as well as how the Capital Requirements Directive relates to covered bonds, the mac-roeconomic dimension of the asset class and covered bond repos.

n Includes 33 country chapters providing de-tailed explanations on the legislation and markets in all covered bond jurisdictions.

n Presents the rating agencies' covered bond methodologies.

n Provides a complete set of covered bond statistics and a description of trends in the covered bond market.

Available for download from ecbc.hypo.org. Paper copies are available on request.

EUROPEAN COVEREDBOND FACT BOOK 2011 “ A leading resource on the different national Covered Bond markets

in Europe and their legal frameworks.”

OVERVIEW OF EU RESIDENTIAL MORTGAGE MARKETS IN 2010

Statistics & Data

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 19

OTHER PUBLICATIONS

COUNTRY FACT SHEETS

Our members help us compile specific country fact sheets, de-tailing trends in mortgage and housing markets in individual countries. Expert data is provided on the following indicators: owner occupation rates, number of transactions, total dwelling stock and house price percentage changes.

MORTGAGE INFO

Our monthly newsletter draws on the latest insights and profes-sional opinions in a range of articles discussing key legislative developments in European mortgage and covered bond markets. Accompanied by a News in Brief section and a monthly Agenda, our readers are kept regularly updated with news and events across EU mortgage markets.

QUARTERLY REVIEW OF EUROPEANMORTGAGE MARKETS

Every quarter we deliver short-term developments in housing and mortgage market datasets using the following indicators: total residential lending outstanding, gross and net mortgage lending, nominal house prices, representative mortgage rates and a breakdown of mortgage markets by interest rate type. Each edition also includes an in-depth spot analysis on an indi-vidual country – with 2011 featuring Germany, Poland, Hungary and Belgium.

STUDIES

Produced in response to market trends as they happen, our technical Committees produce a series of studies on current hot topics to support our key political messages and provide essential data to all stakeholders. Existing studies include:

n Study on Non-Performing Loans (2011)

n Methodological Note and Survey on Non-Performing Loans (2010)

n Study on the Cost of Housing in Europe (2010)

n Study on the Valuation of Property for Lending Purposes (2009)

n Notes on Data Definitions (2008)

n Survey on Out of Court Settlements in the European Union (2008)

n Study on the Protection of the Mortgage Borrower in the European Union (2007)

n Study on the Efficiency of Mortgage Collateral in the European Union (2007)

EXTERNALRELATIONS

External Relations

EUROPEAN PARLIAMENTARY FINANCIAL SERVICES FORUM

The EMF is pleased to be a keen par-ticipant in the European Parliamentary Financial Services Forum (EPFSF). The EPFSF organises events on top-ics touching the financial services industry, with the active participation of MEPs from the European Parliament committess in charge of the relevant issues. High-calibre industry repre-sentatives participate as speakers, with their main objective being to brief the MEPs on the industry position on the topic under discussion.

2011 has seen the following topics of rele-vance to the mortgage industry debated:

n Measures taken by the Industry as a re-sponse to the financial crisis

n Responsible Lending and Borrowing

n Capital Requirements Directive (CRD IV)

n Review of the Markets in Financial Instruments Directive (MiFID)

A list of topics on the Forum’s Agenda in 2012 can be found on the EPFSF website at www.epfsf.org.

EUROPEAN CENTRAL BANK

The EMF and the ECBC maintain an increasingly active and regular dialogue with the ECB via annual and ad hoc meetings, to ex-change information and discuss topical issues relating to European housing and mortgage markets, including covered bonds. The meetings are well attended by staff from a number of divisions at the ECB, among which: Financial Stability and Supervision, Market Operations, Economics, Statistics and Legal Services.

The last three years have seen increased co-operation between the ECBC and the ECB, due to the resilience of covered bonds during the crisis, the role of the asset class as a key long-term funding tool and the importance of covered bonds from a financial stability perspective.

The ninth ECB-EMF annual meeting will be held in April 2012.

EUROPEAN BANKING INDUSTRY COMMITTEE

The EMF is also a member of the Euroeapn Banking Industry Committee (EBIC), a platform bringing together the European banking Industry associations with a view to discussing ques-tions related to financial services. Significantly, the EMF holds the Secretariat of the EBIC Working Group on Mortgage Credit, which closely monitors and where appropriate responds to initiatives at EU level with relevance for mortgage credit.

2011 as such, was a very busy year for the Working Group on Mortgage Credit. The EMF led the Group throughout the key events, coordinating responses to the Commission’s Proposal for a Directive on Credit Agreements Relating to Residential Property,

and to MEP Sánchez Presedo’s draft Report on the Proposal. The end of the year saw a position paper submitted by the EMF be-ing endorsed by the EBIC Working Group, representing a strong Industry position on the Proposal.

Looking forward into 2012, the EBIC Working Group on Mortgage Credit will be closely monitoring the votes on the CARRP Proposal in both the ECON and IMCO Committess in the European Parliament. As a matter of top priority, we will continue to ensure that Industry interests are represented through the Working Group’s collabora-tion, and our dialogue with the Institutions.

ONGOING DIALOGUES

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 21

External Relations

22 | EMF ANNUAL REPORT Activities 2011 | www.hypo.org

ADDING VALUE FOR MEMBERS

With the publication of proposals for CRD IV and Credit Agreements Relating to Residential Property, 2011 represented a vital year in which to make our voice heard, not only vis-à-vis the Institutions but also amongst the European press, whilst at the same time ensuring that our members were provided with the latest develop-ments as soon as they happened.

Once the Commission’s Proposal had been launched in March, media activity flourished. In addition to publishing our own com-ments in a press release immediately following the Proposal’s publication, we responded to requests for comments from European and national press – making 2011 our busiest year yet in terms of media appearances. Throughout the year we maintained a regular media presence, and our Secretary General, Annik Lambert, represented the Federation through television and radio appearances at European and national levels.

Later on in the year saw Annik Lambert appearing at the House of Lords in the UK, providing the EU perspective on the upcoming CARRP regulation emanating from the European Institutions, in response to an invitation from the House itself. The question-and-answer session focused primarily on the potential impact of the European regulation on the UK market, with Members using the recently published draft Report from ECON Rapporteur Sánchez Presedo as a basis for their questions in what was a highly in-formative and useful exchange of information.

Once again, our Annual Conference which took place in November provided members and stakeholders from across the mortgage industry with a useful exchange of views and debates surround-ing the key issues for European mortgage markets. In a change of scene, this year’s Conference took place in the Theatre Hall of Le Plaza Hotel in the centre of Brussels, providing a highly

successful stage for the subsequent discussions. We were de-lighted to welcome amongst our speakers Mr Peter Praet and Mr Michel Stubbe from the ECB, Mr Sánchez Presedo MEP from the European Parliament, Mr Peter Praet and Mr Michel Stubbe from the European Central Bank, Mr Jean-Yves Muylle from the European Commission and Mr Adam Farkas from the European Banking Authority alongside key EMF members and industry stakeholders. Attracting almost 200 participants, the event once more represented a valuable opportunity for networking and discussion of the latest developments across European and in-ternational mortgage markets.

As usual, the EMF Secretariat continued to organise regular meetings of our technical Committees for legal affairs, economic affairs, valuation and statistics, to keep our members up-to-date with the latest happenings at EU level. Due to the high volume of activity being carried out by the Institutions on key files, addition-al ad hoc technical committee meetings were organised in 2011, in response to progress from the Commission and Parliament. These meetings are a very useful supplement for members to the regularly communicated updates, and constitute platforms for discussion of the most recent developments as well as strategic planning moving forward.

2011 saw our busiest year to date regarding activity in the European Parliament. The Legal Affairs, Economic Affairs and ECBC departments have been meeting with MEPs with increased frequency and putting forward our agreed position’s on our files undergoing the legislative procedure in the European Parliament. In addition to this, we attended meetings and seminars on a regular basis, increasing the visibility of the EMF. The fruits of our labour have definitely started to pay off and we hope to see this continue in 2012.

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 23

External Relations

BELGIUM

n Union Professionnelle du Crédit (UPC)

CZECH REPUBLIC

n Czech Banking Association

DENMARK

n Realkreditforeningen

n Realkreditrådet

FRANCE

n Association Française des Etablissements de Crédit et des Entreprises d'Investissement (AFECEI)

n BNP Paribas Personal Finance

n Caisse de Refinancement de l’Habitat (CRH)

n Crédit Foncier de France

n Crédit Immobilier de France

GERMANY

n Verband der privaten Bausparkassen e.V.

n Verband deutscher Pfandbriefbanken e.V. (vdp)

GREECE

n Hellenic Bank Association (HBA)

HUNGARY

n FHB - Mortgage Bank Plc.

n OTP Bank Ltd.

IRELAND

n Irish Mortgage Council

ITALY

n Associazione Bancaria Italiana (ABI)

LATVIA

n Association of Latvian Commercial Banks

FULL MEMBERSEMF members

External Relations

24 | EMF ANNUAL REPORT Activities 2011 | www.hypo.org

NETHERLANDS

n Nederlandse Vereniging van Banken (NVB)

POLAND

n Mortgage Credit Foundation

PORTUGAL

n Banco Espírito Santo

n Banco Santander Totta

n Caixa Económica Montepio Geral

n Caixa Geral de Depósitos S.A.

ROMANIA

n Romanian Banking Association

SPAIN

n Asociacíon Hipotecaria Española (AHE)

SWEDEN

n Swedish Council of Mortgage Lenders / Swedish Bankers' Association

UNITED KINGDOM

n Building Societies Association (BSA)

n Council of Mortgage Lenders (CML)

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 25

ASSOCIATE MEMBERS

TURKEY

n Garanti Bank

n Turkiye Is Bankasi A.S.

FRANCE

n Crédit Logement

RUSSIA

n Agency for Housing Mortgage Lending (AHML)

UNITED KINGDOM

n Clayton Euro Risk

n Genworth Financial

OBSERVER MEMBERS

EMF members

EMF members

External Relations

ECBC MEMBERS

n ABN AMRO

n AIAF

n AKTIA REAL ESTATE MORTGAGE BANK PLC

n ALLEN & OVERY

n ALLIED IRISH BANKS – AIB INTERNATIONAL CENTER

n ANGLO IRISH BANK CORPORATION PLC

n ASOCIACÍON HIPOTECARIA ESPAÑOLA

n ASSOCIATION OF HUNGARIAN MORTGAGE BANKS

n ASSOCIATION OF SWEDISH COVERED BOND ISSUERS

n ASSOCIAZIONE BANCARIA ITALIANA - ITALIAN BANKING ASSOCIATION – ABI

n BANCA POPOLARE DI MILANO

n BANCO ESPÍRITO SANTO

n BANK OF IRELAND MORTGAGES

n BARCLAYS

n BARCLAYS CAPITAL

n BAYERISCHE LANDESBANK - BAYERN LB

n BGC PARTNERS

n BLOOMBERG LP

n BNP PARIBAS

n BNP PARIBAS FORTIS

n BPCE

n BRFKREDIT A/S

n CAISSE CENTRALE DU CRÉDIT IMMOBILIER DE FRANCE - 3CIF

n CAISSE DE REFINANCEMENT DE L’HABITAT - CRH

n CAIXA ECONÓMICA MONTEPIO GERAL

n CAIXA GERAL DE DEPÓSITOS S.A.

n CAJA MADRID

n CITIGROUP

n CLIFFORD CHANCE LLP

n CM-CIC HOME LOAN SFH

n COMMERZBANK SECURITIES

n COUNCIL OF MORTGAGE LENDERS - CML

n CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK

n CRÉDIT AGRICOLE HOME LOAN SFH

n CRÉDIT FONCIER

n CRÉDIT MUTUEL ARKÉA

n CRÉDIT SUISSE

n DANISH SHIP FINANCE

n DANSKE BANK

n DBRS

n DEPFA ACS BANK

n DEUTSCHE BANK AG

n DEUTSCHE HYPOTHEKENBANK AG

n DEUTSCHE PFANDBRIEFBANK AG

n DEXIA CAPITAL MARKETS

n DEXIA MUNICIPAL AGENCY

n DLR KREDIT A/S

n DNB NOR BOLIGKREDITT

n DUTCH ASSOCIATION OF COVERED BOND ISSUERS (DACB)

n DZ BANK

n EAA COVERED BOND BANK PLC.

n EBS BUILDING SOCIETY

n EUREX BONDS

n EUROHYPO - EUROPÄISCHE HYPOTHEKENBANK S.A. – EUROHYPOLUX

n EUROHYPO AG

n EUROMTS

n FINANCE NORWAY - FNO

n FITCH RATINGS LTD

n GE MONEY BANK

n GOH PORTUGAL

n GOLDMAN SACHS

n GRUPO BBVA

n GRUPPO CARIGE

n HSBC BANK PLC

n ICAP

n ING GROUP

n INTESA SAN PAOLO

n IRISH BANKING FEDERATION - ACS IRELAND

n JP MORGAN

n LANDESBANK BADEN-WÜRTTEMBERG

n LINKLATERS

n LLOYDS BANKING GROUP

n MARFIN EGNATIA BANK EUROPE

n MARKETAXESS EUROPE

n MERRILL LYNCH

n MOODY’S

n MORGAN STANLEY BANK AG

n MORTGAGE CREDIT FOUNDATION

n MÜENCHENER HYPOTHEKENBANK EG

n NATIONWIDE BUILDING SOCIETY

n NATIXIS

n NEDERLANDSE VERENIGING VAN BANKEN - NVB

n NETHERLANDS SOCIAL HOUSING GUARANTEE FUND - WSW

n NIBC BANK N.V.

n NOMURA INTERNATIONAL PLC.

n NORD/LB COVERED FINANCE BANK

n NORDDEUTSCHE LANDESBANK GIROZENTRALE

n NORDEA

n NYKREDIT A/S

n OP MORTGAGE BANK

n PFANDBRIEFBANK SCHWEIZERISCHER HYPOTHEKARINSTITUTE

n PFANDBRIEF & COVERED BOND FORUM AUSTRIA

n REALKREDIT DANMARK A/S

n REALKREDITFORENINGEN

n REALKREDITRÅDET - ASSOCIATION OF DANISH MORTGAGE BANKS

n ROYAL BANK OF CANADA - RBC

n ROYAL BANK OF SCOTLAND - RBS

n SANTANDER UK PLC

n SEB

n SNS BANK

n SOCIÉTÉ GÉNÉRALE - CORPORATE & INVESTMENT BANKING

n SOCIÉTÉ GÉNÉRALE SOCIÉTÉ DE CRÉDIT FONCIER (SG SCF)

n STADSHYPOTEK - SVENSKA HANDELSBANKEN

n STANDARD AND POOR’S

n TRADEWEB

n TXS

n UBS

n UKRCBC

n UNICREDIT GROUP

n VERBAND DEUTSCHER PFANDBRIEFBANKEN E.V. - VdP

n WESTFÄLISCHE LANDSCHAFT BODENKREDITBANK AG-WL

n WEST-LB AG

External Relations

26 | EMF ANNUAL REPORT Activities 2011 | www.hypo.org

External Relations

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 27

EXECUTIVE COMMITTEECommittee Members and Staff

n President: Mr Peter ENGBERG JENSEN NYKREDIT

n Secretary General: Annik LAMBERT EUROPEAN MORTGAGE FEDERATION

BELGIUM

n Mr Paul HEYMANS ALLIANZ BELGIUM

n Mr Jozef T’JAMPENS UNION PROFESSIONNELLE DU CREDIT (U.P.C.)

CZECH REPUBLIC

n Mr Vladimir VOJTISEK HYPOTEČNÍ BANKA A.S.

n Ms Vera SVOBODOVA CZECH BANKING ASSOCIATION

DENMARK

n Ms Ane ARNTH JENSEN ASSOCIATION OF DANISH MORTGAGE BANKS

n Mr Lars BANK JØRGENSEN NORDEA KREDIT

FRANCE

n Mr Claude SADOUN CRÉDIT IMMOBILIER DE FRANCE

n Mr Philippe DUPIN CREDIT FONCIER DE France

n Mr Alain GOURIO BNP PARIBAS

GERMANY

n Dr Bernhard SCHOLZ DEUTSCHE PFANDBRIEFBANK AG

n Mr Jens TOLCKMITT VERBAND DEUTSCHER PFANDBRIEFBANKEN e.V.

n Mr Andreas ZEHNDER VERBAND DER PRIVATEN BAUSPARKASSEN

GREECE

n Mr Christos GORTSOS HELLENIC BANK ASSOCIATION

HUNGARY

n Dr András BOTOS ASSOCIATION OF HUNGARIAN MORTGAGE BANKS

n Mr Laszló HARMATI FHB LAND CREDIT AND MORTGAGE BANK

IRELAND

n Ms Dara DEERING EBS BUILDING SOCIETY

n Mrs Eimer O’ROURKE IRISH BANKING FEDERATION

ITALY

n Mr Andrea MENCARINI BANCO POPOLARE

n Mr Raffaele RINALDI ASSOCIAZIONE BANCARIA ITALIANA

n Mr Angelo PEPPETTI ASSOCIAZIONE BANCARIA ITALIANA

LATVIA

n Mr Dzintars KALNINS ASSOCIATION OF LATVIAN COMMERCIAL BANKS

n Mr Rolands PANKO MORTGAGE AND LAND BANK OF LATVIA

n Mr Aivars GRAUDINS ASSOCIATION OF LATVIAN COMMERCIAL BANKS

NETHERLANDS

n Mr Wim MIJS NEDERLANDSE VERENIGING VAN BANKEN

n Ms Anneloes VAN ULDEN NEDERLANDSE VERENIGING VAN BANKEN

POLAND

n Mr Jacek OBLEKOWSKI PKO BANK POLSKI S.A.

n Mrs Agnieszka DREWICZ-TULODZIECKA MORTGAGE CREDIT FOUNDATION

n Mr Robert PIKULA BANK ZACHODNI WBK S.A.

PORTUGAL

n Mr Luis BENTO DOS SANTOS SANTANDER TOTTA

n M. António TOMÁS CORREIA CAIXA ECONÓMICA MONTEPIO GERAL

ROMANIA

n Mr Sergiu OPRESCU ALPHA BANK ROMANIA

n Mr Stefan DINA ROMANIAN BANKING ASSOCIATION (RBA)

SPAIN

n Mr José Ramón ORMAZABAL ASOCIACION HIPOTECARIA ESPAÑOLA

n Mr Antonio José BEJAR GONZALEZ BBVA

n Ms Lorena MULLOR ASOCIACION HIPOTECARIA ESPAÑOLA

SWEDEN

n Mr Anders EKEDAHL SWEDBANK

n Mr Anders BORGCRANTZ LÄNSFÖRSÄKRINGAR BANK AB

n Mr Tomas TETZELL SWEDISH BANKERS’ ASSOCIATION

UNITED KINGDOM

n Mr David COWIE MANCHESTER BUILDING SOCIETY

n Mr Adrian COLES BUILDING SOCIETIES ASSOCIATION

n Mr Paul SMEE COUNCIL OF MORTGAGE LENDERS

External Relations

28 | EMF ANNUAL REPORT Activities 2011 | www.hypo.org

ECONOMIC AFFAIRS COMMITTEE

n Chairman : Mr Wolfgang KALBERER VERBAND DEUTSCHER PFANDBRIEFBANKEN e.V. (Association of German Pfandbrief Banks)

n Rapporteur: Mr Peter TALKS EUROPEAN MORTGAGE FEDERATION

n Senior Adviser: Mrs Katalin DOBRANSZKY-BARTUS EUROPEAN MORTGAGE FEDERATION

BELGIUM n Mr Jean-Louis DE VALCK

CREDIT AGRICOLE – LANDBOUWKREDIET

DENMARK

n Mr Klaus KRISTIANSEN REALKREDIT DANMARK

n Ms Mette SAABY PEDERSEN ASSOCIATION OF DANISH MORTGAGE BANKS

FRANCE

n Mr Alain CARRON CREDIT FONCIER DE FRANCE

n Mr Henry RAYMOND CAISSE DE REFINANCEMENT DE L’HABITAT

GREECE

n Ms Helen BRELLA THE NATIONAL BANK OF GREECE S.A.

HUNGARY

n Mr László HARMATI FHB LAND CREDIT AND MORTGAGE BANK

IRELAND

n Mr Paul O’CONNOR IRISH BANKING FEDERATION

n Ms Amy WALSH IRISH BANKING FEDERATION

ITALY

n Mr Angelo PEPPETTI ASSOCIAZIONE BANCARIA ITALIANA

NETHERLANDS

n Mr Pieter BROMMELCAMP ABN AMRO BANK N.V.

n Mr Jeroen DEKKERS ING BANK N.V.

POLAND

n Mr Lukasz MOLENDA BANK ZACHODNI WBK

n Ms Agnieszka NIERODKA MORTGAGE CREDIT FOUNDATION

PORTUGAL

n Mr Paulo DE SOUSA CAIXA GERAL DE DEPÓSITOS

ROMANIA

n Ms Maria BOGODAI ROMANIAN BANKING ASSOCIATION (ALPHABANK)

SPAIN

n Mr Juan Carlos MAESO CHOLBI BBVA

n Ms Lorena MULLOR ASOCIACION HIPOTECARIA ESPAÑOLA

SWEDEN

n Mr Johan HANSING SWEDISH BANKERS' ASSOCIATION

TURKEY

n Mr A. Aykut DEMIRAY TURKIYE IS BANKASI A.S. (ISBANK)

UNITED KINGDOM

n Mr Paul BROADHEAD THE BUILDING SOCIETIES ASSOCIATION

Committee Members and Staff

External Relations

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 29

n Chairman: Mr Alain GOURIO BNP PARIBAS

n Rapporteur: Ms Sarah KIERAN EUROPEAN MORTGAGE FEDERATION

n Senior Adviser: Mrs Jennifer JOHNSON EUROPEAN MORTGAGE FEDERATION

BELGIUM

n Mr Jozef T’JAMPENS UNION PROFESSIONNELLE DU CREDIT

CZECH REPUBLIC

n Ms Radka OPLTOVA CZECH BANKING ASSOCIATION

DENMARK

n Ms Trineke BORCH JACOBSEN DANISH MORTGAGE BANKS’ FEDERATION

n Mr Jeppe TORP VESTENTOFT ASSOCIATION OF DANISH MORTGAGE BANKS

FRANCE

n Ms Nicole CHAVRIER CRÉDIT FONCIER DE FRANCE

GERMANY

n Mr Otmar STÖCKER VERBAND DEUTSCHER PFANDBRIEFBANKEN

n Mr Christian KÖNIG VERBAND DER PRIVATEN BAUSPARKASSEN E.V.

GREECE

n Mr Konstantinos PANAGOPOULOS HELLENIC BANKS ASSOCIATION

HUNGARY

n Dr András BOTOS ASSOCIATION OF HUNGARIAN MORTGAGE BANKS

IRELAND

n Ms Louise O’MAHONY IRISH BANKING FEDERATION

ITALY

n Ms Francesca Santilli ASSOCIAZIONE BANCARIA ITALIANA

n Ms Federica Allegritti ASSOCIAZIONE BANCARIA ITALIANA

n Mr Giancarlo POMPEI BANCA MONTE DEI PASCHI DI SIENA S.p.A.

LATVIA

n Ms Aiga KRIEVA MORTGAGE AND LAND BANK OF LATVIA

POLAND

n Ms Agnieszka DREWICZ-TULODZIECKA MORTGAGE CREDIT FOUNDATION

n Ms Isabela MAKOWSKA BRE BANK HIPOTECZNY SA

PORTUGAL

n Mr João DIAS GARCIA CAIXA GERAL DE DEPOSITOS

ROMANIA

n Ms Emilia Mirona SPOREA BANCA COMERCIALA ROMANA

SPAIN

n Mr José Manuel GARCIA CRESPO BBVA

n Mr Ignacio Rodriguez NOVOA CAIXA GALICIA

n Mr Gregorio ARRAZ PUMAR ASOCIACIÓN HIPOTECARIA ESPAÑOLA – AHE

SWEDEN

n Mr Tomas TETZELL SWEDISH BANKERS' ASSOCIATION

UK

n Mrs Jackie BENNETT COUNCIL OF MORTGAGE LENDERS

LEGAL AFFAIRS COMMITTEECommittee Members and Staff

External Relations

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STATISTICS COMMITTEE

n President: Mr Christian NILSSON SWEDISH BANKERS' ASSOCIATION

n Rapporteur: Mr Alessandro Sciamarelli EUROPEAN MORTGAGE FEDERATION

BELGIUM

n Mr Frans MEEL FEBELFIN

CZECH REPUBLIC

n Mr Juraj HOLEC HYPOTEČNÍ BANKA, A.S.

DENMARK

n Mr Kaare CHRISTENSEN ASSOCIATION OF DANISH MORTGAGE BANKS (REALKREDITRAADET)

n Mr Flemming Dengsø NIELSEN REALKREDITFORENINGEN

France

n Mr Jean-Marie GAMBRELLE CRÉDIT IMMOBILIER DE FRANCE

GERMANY

n Mr Thomas HOFER VERBAND DEUTSCHER PFANDBRIEFBANKEN e.V.

HUNGARY

n Mr Gyula NAGY FHB MORTGAGE BANK

IRELAND

n Mr Anthony O'BRIEN IRISH BANKING FEDERATION

ITALY

n Mr Marco MARINO ASSOCIAZIONE BANCARIA ITALIANA

NETHERLANDS

n Mr Nico DE VRIES ING N.V.

POLAND

n Ms Agnieszka NIERODKA MORTGAGE CREDIT FOUNDATION

n Mr Jacek RYSZEWSKI BRE BANK HIPOTECZNY S.A.

PORTUGAL

n Mrs Maria Lúcia BICA CAIXA ECONOMICA MONTEPIO GERAL

n Mr João NEVES CAIXA ECONOMICA MONTEPIO GERAL

ROMANIA

n Mr Stefan DINA ROMANIAN BANKING ASSOCIATION

SPAIN

n Ms Irene PEŇA CUENCA ASOCIACIÓN HIPOTECARIA ESPAÑOLA

TURKEY

n Mr. A. Aykut DEMIRAY TURKIYE IS BANKASI A.S.

UNITED KINGDOM

n Ms Caroline PURDEY COUNCIL OF MORTGAGE LENDERS

VALUATION COMMITTEEn Chairman:

Mr José Ramón ORMAZABAL SANTANDER GROUP

n Rapporteur: Ms Jennifer JOHNSON EUROPEAN MORTGAGE FEDERATION

DENMARK

n Mrs Marie LUND BENDTSEN ASSOCIATION OF DANISH MORTGAGE BANKS

n Mr Ebbe RØJGAARD REALKREDIT DANMARK

GERMANY

n Mr Wolfgang KÄLBERER VERBAND DEUTSCHER PFANDBRIEFBANKEN e.V.

n Mr Christoph KETTEL EUROHYPO AG

HUNGARY

n Mr Ákos FISCHL OTP JELZALOGBANK

CZECH REPUBLIC

n Mr Michal KREBS KOMERCENI BANKA, A.S.

ITALY

n Mr Angelo PEPPETTI ASSOCIAZIONE BANCARIA ITALIANA

POLAND

n Ms Jadwiga OSTRZECHOWSKA RAIFFEISEN BANK POLSKA S.A.

THE NETHERLANDS

n Mr Chris DE RUITER FGH BANK N.V.

PORTUGAL

n Mr Luis VARANDAS IMOCAIXA

ROMANIA

n Ms Yvonne VITIKAN ROMANIAN BANKING ASSOCIATION

SPAIN

n Ms Irene PEÑA CUENCA SPANISH MORTGAGE ASSOCIATION

SWEDEN

n Mr Jonny HEVING STADSHYPOTEK

UNITED KINGDOM

n Mr Paul TROTT BARNWOODS LTD

Committee Members and Staff

External Relations

www.hypo.org | EMF ANNUAL REPORT Activities 2011 | 31

n Chairman: Paul O’CONNOR ACS IRELAND/IRISH BANKING FEDERATION

n Luca BERTALOT Deputy Secretary General, EMF; Head of ECBC

n Benjamin BURLAT Economic Adviser

n Paloma REPULLO CONDE Economic Adviser

DENMARK

n Karsten BELTOFT REALKREDITFORENINGEN

n Carsten TIRSBÆK MADSEN REALKREDITRÅDET

FRANCE

n Patrick AMAT CAISSE CENTRALE DU CRÉDIT IMMOBILIER DE FRANCE - 3CIF

n Sandrine GUÉRIN CRÉDIT FONCIER

GERMANY n Sascha KULLIG

VERBAND DEUTSCHER PFANDBRIEFBANKEN E.V.

n Jens TOLCKMITT VERBAND DEUTSCHER PFANDBRIEFBANKEN E.V.

ITALY n Paolo CANCELLARO

INTESA-SANPAOLO/ABI

n Stefano PATRUNO INTESA-SANPAOLO/ABI

LUXEMBOURG

n Reinolf DIBUS EUROHYPOLUX

n Markus THESEN NORD/LB COVERED FINANCE BANK

NETHERLANDS

n Jac BESUIJEN DACB - DUTCH ASSOCIATION OF COVERED BOND ISSUERS

n Wybe VAN DIJK NVB - NETHERLANDS BANKERS ASSOCIATION

PORTUGAL

n Alda PEREIRA CAIXA GERAL DE DEPOSITÓS S.A.

n Eduarda VICENTE CAIXA GERAL DE DEPOSITÓS S.A.

SPAIN

n Antonio TORÍO ASOCIACIÓN HIPOTECARIA ESPAÑOLA - AHE

n Alex VALENCIA ASOCIACIÓN HIPOTECARIA ESPAÑOLA - AHE

SWEDEN

n Fanny BORGSTRÖM ASCB – ASSOCIATION OF SWEDISH COVERED BOND ISSUERS

n Ola LITTORIN ASCB – ASSOCIATION OF SWEDISH COVERED BOND ISSUERS

UK

n Luciano CHIARELLI UNICREDIT

n Steffen DAHMER JP MORGAN

n Boudewijn DIERICK BNP PARIBAS

n Roger KUNTSCHE JP MORGAN

n Heiko LANGER BNP PARIBAS

n Mauricio NOE DEUTSCHE BANK AG

n Bernd VOLK DEUTSCHE BANK AG

n Philipp WALDSTEIN UNICREDIT

ECBC STEERING COMMITTEECommittee Members and Staff

External Relations

n Annik LAMBERT Secretary General

n Daniel BRADLEY Assistant to the Secretary General

n Sophie BLAVE Administrative Assistant

n Sarah KIERAN Head of Legal Affairs

n Jennifer JOHNSON Senior Legal Adviser

n Peter TALKS Head of Economic Affairs

n Katalin DOBRANSZKY-BARTUS Senior Economic Adviser

n Alessandro SCIAMARELLI Head of Statistics

n Jean-Michel CORBISIER Head of Communications

n Jane GIMBER Senior Communications Officer

n Luca BERTALOT Deputy Secretary General, EMF; Head of ECBC

n Benjamin BURLAT Economic Adviser

n Paloma REPULLO CONDE Economic Adviser

EMF Secretariat

ECBC Secretariat

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EUROPEAN MORTGAGE FEDERATION ANNUAL REPORT ACTIVITIES 2011

EMF activ

ities

2011

ANNUAL REPORT