Capital Servicing Co., Ltd. (“Capital Servicing”) is recognized as the industry leader in servicing commercial and residential mortgage loans for international institutional investors. Highly rated by Standard & Poor's in Japan as a primary servicer, Capital Servicing has extensive experience servicing securitized loans, structured mortgage loans, and conduit loans, which include CMBS and RMBS transactions in Japan. Our primary servicing teams work closely with our asset management teams for seamless transfer of loans that default and fall into special servicing. Our System allows us to efficiently manage performing and non-performing loans on a single integrated platform and centrally warehouses all asset data, and provide accurate, timely, and consistent reporting to international standards. A primary servicer is the front line in the administration and management of performing loans. Tasks include the collection of monthly principal, interest, and escrow payments from borrowers, delinquency management, prepayment calculations, as well as remitting and reporting to investors.
Capital Servicing’s extensive servicing track record, workout expertise, international reporting capabilities, strong internal controls, and state-of-the-art systems have earned us the highest special servicer ratings from Standard & Poor's. Our experience covers non-performing loan (“NPL”) portfolios backed by commercial real estate assets (office, hotels, shopping centers, industrial storage, mixed use, etc.) and residential assets located throughout Asia for our diverse clientele that includes leading international and regional banks, investment firms, and non-banking financial institutions.
Commercial NPL Portfolios: We utilize strong local market knowledge and proactive strategies to maximize recoveries and mitigate risks. Our asset managers not only pursue strategies such as voluntary sale and discounted payoffs, but also explore, when appropriate, loan restructuring and business revitalization. This combination of creativity and experience frequently results in a win-win scenario; investor returns are maximized while creating the best outcome for the borrower. S&P’s evaluation of Capital Servicing’s Japan operation stated that we have “a highly efficient special servicing operation; better collection performance, and systems designed to provide global investors with highly reliable services".
Residential NPL Portfolios: Unlike commercial NPLs, volumes are much higher and individual loan unpaid principal balances are much lower. Capital Servicing has created efficient business processes that enable time-oriented resolutions that maximize returns.
Capital Servicing is able to perform efficient, cost-effective Back-Up Servicing (BUS) for any servicing operation in Asia. Loan servicing data is securely transferred from the servicer and stored safely on our encrypted servers, so that in the event the servicer defaults on their ability to service any assets, Capital Servicing is ready to step in and seamlessly take over servicing duties. Capital Servicing offers a wide range of Back-Up Servicing tailored to the needs of the client. Below is an outline of the levels of Back-Up Servicing which Capital Servicing offers, ranging from “Cold” to “Hot”. Cold BUS requires the lowest level of involvement from the Back-Up Servicer, and therefore has a longer lead-time prior to taking over servicing duties, and as the level of involvement increases, so the minimum advance notice decreases.
Capital Servicing has been entrusted with due diligence work to evaluate monetary claims mainly for financial institutions, funds, and other general business corporations.
In the evaluation of monetary claims, we carefully examine the claims, debtors, collateral, guarantors, background of the project, etc. based on the submitted documents and other materials, and then evaluate and calculate the fair value of the monetary claims.
(In addition to receiving this as part of our special servicing operations, we also undertake independent due diligence operations. Through these operations, we help ensure the transparency of our balance sheets.)
Asset Management
Investment & Acquisition
Portfolio Management
As an intermediary company (Governor of Tokyo No. 31732) specified by the Money Lending Business Act, we act as an intermediary for loan agreements between lenders and borrowers.
We provide administrative support services in compliance with the Money Lending Business Act and other relevant laws and regulations. This includes explaining loan terms and conditions to borrowers, verifying loan application forms and other documents, assisting with appraisals, and preparing screening materials—all of which are necessary for money lenders to provide financing.
Through these services, we strive to streamline the application process for money lenders and facilitate the smooth conclusion of loan agreements.