Difference between revisions of "Credit Servicing"
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== Definition == | == Definition == | ||
− | '''Credit Servicing''' is the management or administration of existing credit agreements such as mortgages or other loans. | + | '''Credit Servicing''' is the management or administration of existing [[Credit Agreement | credit agreements]] such as [[Mortgage | mortgages]] or other [[Loan | loans]]. It means one or more of the following activities: |
+ | |||
+ | * collecting or recovering from the [[Borrower]], in accordance with national law, any payments due related to a creditor’s rights under a credit agreement or to the credit agreement itself | ||
+ | * renegotiating with the borrower, in accordance with national law, any terms and conditions related to a creditor’s rights under a credit agreement, or of the credit agreement itself, in line with the instructions given by the [[Credit Purchaser]], where the [[Credit Servicer]] is not a credit intermediary as defined in Article 3, point (f), of Directive 2008/48/EC or in Article 4, point (5), of Directive 2014/17/EU | ||
+ | * administering any complaints relating to a creditor’s rights under a credit agreement or to the credit agreement itself | ||
+ | * informing the borrower of any changes in interest rates or charges or of any payments due related to a creditor’s rights under a credit agreement or to the credit agreement itself | ||
== Issues and Challenges == | == Issues and Challenges == | ||
− | In the context of | + | * In the context of [[Securitisation]] one of the requirements for high quality transactions is that the underlying exposures in the pool need to be serviced according to similar servicing procedures |
− | similar servicing procedures | ||
----- | ----- | ||
[[Category:Securitisation]] | [[Category:Securitisation]] | ||
[[Category:Credit Portfolio Management]] | [[Category:Credit Portfolio Management]] | ||
+ | [[Category:NPL Directive]] | ||
+ | [[Category:Credit Life Cycle]] |
Latest revision as of 18:15, 2 March 2023
Definition
Credit Servicing is the management or administration of existing credit agreements such as mortgages or other loans. It means one or more of the following activities:
- collecting or recovering from the Borrower, in accordance with national law, any payments due related to a creditor’s rights under a credit agreement or to the credit agreement itself
- renegotiating with the borrower, in accordance with national law, any terms and conditions related to a creditor’s rights under a credit agreement, or of the credit agreement itself, in line with the instructions given by the Credit Purchaser, where the Credit Servicer is not a credit intermediary as defined in Article 3, point (f), of Directive 2008/48/EC or in Article 4, point (5), of Directive 2014/17/EU
- administering any complaints relating to a creditor’s rights under a credit agreement or to the credit agreement itself
- informing the borrower of any changes in interest rates or charges or of any payments due related to a creditor’s rights under a credit agreement or to the credit agreement itself
Issues and Challenges
- In the context of Securitisation one of the requirements for high quality transactions is that the underlying exposures in the pool need to be serviced according to similar servicing procedures