EU Commission Sets Sights On Minimum Standards For Credit Servicers

QuickTake: New rules aim for a more single servicers market but potentially at a cost

Credit servicers, originators and credit purchasers will all be impacted in the form of new authorization requirements, including conduct of business obligations, (also creating possible new options), notification requirements to enforce against and/or transfer in-scope credit agreements as well as a breadth of standard form contracts and polices that will need to be implemented. Affected firms will want to use the time between now and potential entry into full force by July 2021 to lobby and prepare for a move to these new standards.

The EU's proposed Servicing Directive – why now?

For originators and investors, credit servicers play an important role in a breadth of financial transactions, in particular for securitizations and non-performing loans and exposures (collectively herein NPEs), often framed as the "legacy hangover from the crisis." It should therefore come as no