Credit servicing

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Kreditservicing ( English Loan Servicing ) is the anglicized for a service of financial services institutions , the loan processing and administration of loans of all kinds for credit institutions to take.

General

Service companies of this type are called (credit) servicers and they receive the order from a credit institute. The Servicer assumes no credit risk because it remains in the bank's balance sheet of the client . The servicer is a company that is independent of the client and, in particular, does not belong to the client's banking group . This is what distinguishes the loan servicer from the loan factory , which is an in-house company . The servicer is legally only a financial services institution if it takes over the financial portfolio management according to § 1 para. 1a no. 3 KWG and has a decision-making leeway (for example in credit decisions ) ("real asset management"). If, on the other hand, the decisions are made by the client and the credit servicer does not have any leeway to make judgments , a banking license according to Section 32 (1) KWG is not required.

tasks

The servicer can already take over the evaluation of the loan application and the loan documents of the bank customers. The subsequent organizational work processes such as creditworthiness check , credit analysis , credit scoring or rating , credit decision , credit agreement , acceptance of credit collateral , credit disbursement and credit monitoring can be taken over by the credit servicer. The servicer can also take on the task of administering entire loan portfolios , carrying out reporting , taking on risk management and risk control , selling loan receivables ( transferable loan facilities ) to third parties, selling asset-backed securities on the secondary market by securitizing the loans , or dunning and non-performing securities Process loans .

Banking supervisory regulation

Outsourcing the loan processing to a Kreditservicer is within the limits of § 25b para. 1 KWG banking regulations possible. The outsourcing must not affect the regularity of these transactions and services or the business organization within the meaning of Section 25a (1) KWG at the client's premises . Furthermore, the overall responsibility of the managing directors of the outsourcing institution must be retained and their management and control options must not be impaired. If, in addition to technical loan processing, decision-making powers are also transferred from the outsourcing institute to the servicer by way of representation , the outsourcing institute must specify precisely predictable and verifiable objective assessment and result-finding criteria with regard to the decision, so that the outsourcing company has no scope for judgment . This ensures that the decision actually made by the credit servicer is legally that of the outsourcing credit institution.

Well-known loan servants

The consistent implementation of the concept of a credit factory leads to cost advantages compared to the classic branch banks from the savings bank and cooperative sector , where the cost-income ratios usually start above the 60% limit. This consistent focus on cost efficiency also includes a market presence with a strongly focused product range.

The Mortgage Management GmbH was founded in 1999 as a production Institute for the credit and loan processing and is the largest provider of credit-processing services on the open market in Germany. Your range of services in the lending environment extends to the entirety of new business and existing processes through to intensive support and loan processing . Since January 2006 it has been a subsidiary of VR Kreditwerk AG, which belongs to Schwäbisch Hall and has been operating as Schwäbisch Hall Kreditservice AG since April 2012 . It is the largest German credit factory. S-Kreditpartner GmbH , founded in Berlin in June 2011, belongs to the Sparkassen-Finanzgruppe and is a credit servicer for consumer loans and car loans . The Portigon Financial Services GmbH as a former subsidiary of Portigon AG was founded in January 2014 Kreditservicer and performs these tasks for the first Abwicklungsanstalt through, it is one of the Since March 2016th

Individual evidence

  1. BaFin circular 11/2001 of December 6, 2001, outsourcing of areas to another company in accordance with Section 25a (2) KWG , No. 15
  2. Thomas Hartmann-Wendels , How important foreign banks are for the German financial market , in: Börsen-Zeitung No. 185 of September 25, 2010, p. 19