LOANCOS Group, the largest Third Party credit platform for mortgage financing in Germany with 4bn assets, has successfully obtained approval by German regulator BaFin as Loan servicer for NPL (Non-performing loans) under new regulation for Secondary Loan Markets, also allowing EU-wide activity under EU passport rules.
Current market indicators such as the NPL barometer surveyed by the German industry association for Loan purchase and servicing BKS (Bundesvereinigung Kreditankauf und -servicing) are predicting for Germany a total NPL volume of EUR 40 bn across bank balance sheets.
NPL activity within LOANCOS Group is spearheaded by PPS Proceed Portfolio Services. According to Tilo Knebusch, Managing Director of PPS, “German banks have started to use targeted secondary market loan sales as a means to improve capital ratios. At the same time, sellers’ and buyers’ pricing expectations are starting to align, which means that transactions are more likely to get done.”
“LOANCOS Group has been a provider of appropriate creative solutions in SPL / NPL Management between restructuring and sell-down for 20 years, also evolving to reflect changes in regulation and market practice all the way through. Since LOANCOS is among the largest providers of Back-Up Servicing solutions for the German financial industry, we can help operating platforms and Lending parties involved to prepare up-front for worst case scenarios”, adds Clifford Tjiok, LOANCOS Chief Commercial Officer.
