Special Servicing Services
A Symphony of Special Servicing Expertise™Lending Compliance Systems®
For over 40 years, our Lending Compliance Systems® Group has provided the complete spectrum of distressed CRE special servicing, collateral management, and risk-mitigation services to financial institutions and creditors, investors, and stakeholders throughout the world. We have successfully managed and generated Billions of Dollars and returned them to our clients’ treasuries.
Special servicing services in banking refer to a specialized function that manages distressed or troubled assets, typically loans or investments. When borrowers are unable to meet their payment obligations, these loans are considered at risk of default. Special servicing steps in to handle these cases, aiming to minimize losses and maximize recovery for the lender or investor.
EDS’ Special Servicing Services team often takes over from regular loan servicing when the loan becomes delinquent or encounters problems such as non-payment, bankruptcy, or financial distress on the part of the borrower. Our role includes:
- Workouts and Restructuring: Negotiating new terms, repayment plans, or restructuring the loan to make it more manageable for the borrower while still aiming to protect the interests of the lender.
- Foreclosure or Repossession: Initiating foreclosure proceedings or repossessing collateral, depending on the type of loan and the available security.
- Risk Assessment: Evaluating the potential risks and determining the best strategy for minimizing losses, whether through renegotiation, restructuring, or liquidation.
- Legal and Regulatory Compliance: Ensuring that all actions taken comply with relevant laws and regulations, which can be complex and specific to different types of loans or assets.
- Communication and Documentation: Maintaining communication with the borrower, documenting all actions taken, and keeping accurate records of the process.
Overall, our special servicing aims to navigate the complexities of distressed assets and maximize recovery while minimizing losses for the lender or investor involved.
Our distinctive Lending Compliance Systems® programs and services reduce risk and bring our clients the safety, comfort, flexibility, and confidence to increase credit to existing customers and to seek out and book new business opportunities where others cannot.
Collateral Management Services
DUE DILIGENCE | INSPECTIONS | VALUATION | RISK-MITIGATION | MONITORING | COMPLIANCE
Credible Collateral Management is critical to the lending process.
Collateral Management Services refers to the process of managing and monitoring the assets that are pledged as collateral to secure a loan or other type of financing. Collateral management is a critical component of lending, as it helps to ensure that the lender has a sufficient level of protection in the event that the borrower defaults on the loan.
The process of collateral management services begins with the identification and selection of the appropriate collateral. This typically involves an assessment of the value, liquidity, and risk of the collateral. Once the collateral has been selected, the lender will establish a collateral management program that includes procedures for monitoring, valuing, and maintaining the collateral.
The lender will also have to establish procedures to ensure that the collateral is properly maintained and insured. This may include regular inspections and appraisals of the collateral, as well as the maintenance and replacement of any damaged or worn-out assets.
It also involves monitoring the performance of the borrower and managing the collateral in the event of default. This may include taking possession of the collateral and liquidating it to recover the outstanding loan amount.
It is typically managed by the lender or dedicated collateral management experts such as EDS. The use of technology such as collateral management systems (CMS) is becoming more common in order to automate the collateral management process and to improve the efficiency and effectiveness of its program.
For over 40 years, EDS’ Lending Compliance Systems® Group has provided the complete spectrum of collateral management and risk-mitigation services to financial institutions, lenders, leasing companies, and myriad other secured creditors, investors, and stakeholders throughout the world.
Our Collateral Management and Risk Mitigation suite-of-services include Feasibility Studies, Pre-Funding and Transactional Due Diligence, Collateral Asset Inspections/Tagging/Cataloging/Appraisals, Site/Risk Assessments, Account Monitoring, Project Management, Environmental Compliance Reviews, and Periodic Onsite Exams and Audits.
Our multidisciplinary compliance examiners and site-specific specialists work closely with the client to analyze and determine its institutional and regulatory requirements. After goals and objectives are established, our compliance teams prepare comprehensive protocols, develop account and site-specific strategies, and visit the borrower’s location(s) to identify, tag, and document collateral assets, and we pair this knowledge with the direct asset recovery experience of our commercial/industrial disposition experts. We meet with borrowers and site management personnel to communicate the level of compliance its lender requires in a courteous and professional manner that leaves no room for interpretation.
EDS’ distinctive Collateral Management programs and services reduce risk and bring our clients the safety, comfort, flexibility, and confidence to increase credit to existing customers and to seek out and book new business opportunities where others cannot.
EDS’s unparalleled level of expertise is recognized and appreciated in boardrooms and courtrooms throughout the world. How may we be of service to you?
Special Servicing Group
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