Difference between revisions of "Credit Servicing"
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== Definition == | == Definition == | ||
| − | '''Credit Servicing''' is the management or administration of existing [[Credit Agreement | credit agreements]] such as [[ | + | '''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 | * 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 | ||
Revision as of 17:20, 3 June 2022
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
