Special Servicing
A Special Servicer is responsible for maximizing recoveries on Non-Performing Loans (NPL). The specific definition of when a loan becomes non-performing will vary according to the conditions of individual loan transactions, but the general concept is the same: borrower conditions are insufficient to satisfy the governing terms of a loan. The majority of the NPL portfolios serviced by Capital are acquired NPL portfolios, comprised of NPLs purchased from one or more financial institutions.
Commercial Non-Performing Loan Portfolios
Our experienced teams of Asset Managers utilize strong local market knowledge and creative strategies to resolve assets in a timely manner. While various legal processes such as foreclosure are available, experience shows that negotiation yields the best results for both investor and borrower. Our Asset Managers not only pursue strategies such as voluntary sales, and discounted pay-offs, but also consider loan restructuring and business revitalization where appropriate. This combination of creativity and experience frequently results in a win-win situation, where investor returns are maximized, while at the same time creating the best outcome for the borrower.
Residential Non-Performing Loan Portfolios
To date, the largest residential NPL portfolios under Capital's management, have been in Thailand and Taiwan. Unlike commercial NPLs, volumes are much higher and individual loan unpaid principal balances are much lower. Capital has created efficient business processes that enable time-oriented resolutions that maximize returns.
NPL Securitization
Due to the complicated nature of NPL Securitizations, the track record and capability of a Special Servicer is of vital importance. Capital's proven track record and ability to consistently resolve assets above investor expectations and on a timely basis contributes to the high ratings of the securitizations under management.
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