Loan Servicer

From Open Risk Manual
(Redirected from Credit Servicer)

Definition

Loan Servicer. A party which is performs the Loan Servicing function. A legal person that, in the course of its business, manages and enforces the rights and obligations related to a creditor’s rights under a non-performing credit agreement, or to the non-performing credit agreement itself, on behalf of a credit purchaser, and carries out at least one or more credit servicing activities. The Loan Servicer may be the original lender or it may be someone else. For instance, if the originating bank is acquired by another party, its loan portfolio may be given to some third party for servicing.

Synonyms and Antonyms

Legal Requirements for Authorisation

NB: Legal requirements depend on jurisdiction, the below summary reflects the EU NPL Directive

  • the applicant is a legal person
  • the members of the applicant’s management or administrative organ are of sufficiently good repute
  • the applicant’s management or administrative organ, as a whole, has adequate knowledge and experience to conduct the business in a competent and responsible manner
  • the persons who hold qualifying holdings in the applicant are of sufficiently good repute
  • the applicant has in place robust governance arrangements and adequate internal control mechanisms, including risk management and accounting procedures, which ensure respect for borrower rights and compliance with the laws governing a creditor’s rights under a credit agreement, or the credit agreement itself
  • the applicant applies an appropriate policy ensuring compliance with rules for the protection, and the fair and diligent treatment, of borrowers, including by taking into account their financial situation and, where available, the need for such borrowers to be referred to debt advice or social services
  • the applicant has in place adequate and specific internal procedures that ensure the recording and handling of complaints from borrowers
  • the applicant has in place adequate anti-money laundering and counter terrorist financing procedures
  • the applicant is subject by virtue of applicable national law to reporting and public disclosure requirements

See Also

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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