Immediate obligor and ultimate obligor concerning exposures secured by mortgages on immovable property

Paragraphs 79 and 80 of Annex II to Regulation (EU) No. 680/2014 (ITS on Supervisory Reporting) are only applicable to exposures where CRM techniques with substitution effects are considered. If other CRM techniques are used, the exposure shall always be assigned to the country where the immediate obligor of the exposure is located. For the example provided in the background to the question, this means that neither solution I nor II are correct. Assuming that the part of 400 Euro is assigned to the exposure class according to Article 112 (i) of Regulation (EU) No 5752013 (CRR), all parts of the exposure are reported in template C 09.01 (CR GB1) of Annex I to the ITS on Supervisory Reporting in the sheet for Germany: CR GB1 Germany: Row 070 (Corporates), column 010 (original exposure pre conversion factors): 600 Euro Row 070 (Corporates), column 075 (exposure value):                                         600 Euro Row 090 (Secured by mortgages on immovable property), column 010:             400 Euro Row 090 (Secured by mortgages on immovable property), column 075:             400 Euro.