- · New commercial NPL portfolio taken over into servicing
- · International investors are showing interest
PPS Proceed Portfolio Services, a member of LOANCOS Group, the largest Third Party credit platform for mortgage financing in Germany with EUR 4 bn assets, has successfully obtained approval by German regulator BaFin as Loan servicer for NPL (Non-performing loans) under new regulation for Secondary Loan Markets..
As a result, both Proceed Portfolio Services GmbH and LOANCOS GmbH now have regulatory approval as loan servicers for NPLs within the LOANCOS Group.
According to current market indicators such as the NPL barometer of BKS (Bundesvereinigung Kreditankauf und Servicing), a portfolio of NPLs in bank balance sheets of EUR 40 billion is expected in Germany alone.
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 “the separate BaFin approval for PPS as NPL Loan Servicer is another major strategic step for the entire LOANCOS Group”.
“In our NPL business, we have i. a. this year taken over servicing for a new commercial portfolio and are working on a number of further transactions especially around the purchase of commercial real estate financings. International investors have adopted to the new general set-up and are showing readiness to build their own portfolios through single transactions”, explains Thomas Spulak, Executive Director, Proceed Portfolio Services.
“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.
