Loan processing

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Loan Processing ( English loan workout ) is banking the settlement of non-performing loans by debt collection and recovery of loan collateral in canceled loans with the aim of the increased credit risk for the lender to reduce or eliminate.

General

Loan processing is a sub-area of problem loan processing . The use of the term loan processing is not uniform in the specialist literature . It is sometimes used as a synonym for loan processing or loan servicing . However, banking management and jurisprudence mostly use the term loan processing for the premature termination of the loan relationship, including Thomas Hartmann-Wendels . For the purpose of loan processing, the loan agreement is through loan terminationto end prematurely and, if necessary, to begin with a subsequent realization of collateral. Loan processing is linked to payment defaults in debt servicing , which have led to payment arrears with a borrower . The existing at a bank exposure is referred to as "frozen credit" of a dubious claim is true and written off must be. The lenders have the following options:

The decision to loan processing the loan ratio is not until the scheduled end of the loan term continued but ended prematurely. An early loan settlement is reasonable for the lender if it does not suffer any financial disadvantage.

organization

Loan processing has specific areas of responsibility for which special specialists are required. It therefore makes sense to separate loan processing from loan processing organizationally and run it as an independent organizational unit . The workflow planning for this unit divides the individual workflows into workflow sections , which result in a complete sequence . This is based on legal and economic requirements. After the loan is canceled, the problem loan is passed on to the loan processing department, which now takes over the processing based on work instructions ( manuals ). As part of the separation of functions loan processing part as the loan processing and credit analysis to back office .

Credit institutions can reduce their vertical range of manufacture in this area by outsourcing loan processing to, for example, loan service providers . These financial services institutions take on the activities described for processing fees .

procedure

The addressees of the loan processing are the borrower , any third party security provider and, if applicable, the insolvency administrator . Except for blank loans , the loan collateral is first reassessed . If this results in a decrease in value , value adjustments (formation of an individual value adjustment or of provisions ) or depreciation must be made. If the borrower's personal liability or corporate liability assumed, the loan processing will attempt to enforcement against movable (by garnishment or attachment and transfer order ) and immovable assets (through foreclosure , receivership or collateral mortgage ) their impending debt loss by titling the requirement to Reduce. In the case of loan collateral (from the borrower or from third-party security providers), its utilization serves the same purpose. In the case of consumers , the application must be made to open or accompany (consumer) insolvency proceedings .

Loan processing ends with the complete repayment (z. B. by credit repayment, credit trading), the residual debt as part of the insolvency proceedings , the limitation of the outstanding amount or (more rarely) the withdrawal of termination and continuation of the loan or debt restructuring .

Demarcation

Loan processing is to be separated from loan processing and loan servicing . Loan processing takes on the processing of new loans and extensions , while loan servicing takes care of the administration of the loans through to final repayment . Loan processing is in contrast to loan restructuring , which is more costly, can hardly be automated and requires higher personnel intensity. The loan restructuring includes measures with the help of which a bad loan is to be cured again.

Individual evidence

  1. ↑ Thomas Hartmann-Wendels / Andreas Pfingsten / Martin Weber, Bankbetriebslehre , 2000, p. 224
  2. ↑ Thomas Hartmann-Wendels / Andreas Pfingsten / Martin Weber, Bankbetriebslehre , 2010, p. 592 ff.
  3. ↑ Credit claims are increasingly being transferred to debt collection agencies or factoring companies for loan processing.
  4. ↑ BGH NJW 1997, 2875, 2877
  5. ↑ Thomas Hartmann-Wendels / Andreas Pfingsten / Martin Weber, Bankbetriebslehre , 2010, p. 590