The current climate is leading wholesale funders, investors and rating agencies to increase their focus on back-up servicing.
Service providers with no, or limited, primary servicing capability claim that they will rely on the infrastructure and resources of the existing servicer if required to step-in (what we like to call Plan A). But what happens if Plan A is not possible and a Plan B is required?
A number of circumstances could lead to a Plan B scenario:
The implementation of a Plan B requires the management, technology platform, resources and industry accreditations of a highly experienced primary servicer, to cater for any circumstance, asset type and exit strategy.
Over the years AMAL has undertaken many servicer transfers, where the originator/servicer, the portfolio or both were distressed. Following are some examples:
Transition of over 12,000 small-ticket equipment leases (30%+ past 90 days arears) following nine months of receivership. The project required a full technology transfer and recruitment of a specialist collections manager and team of eight.
Transition of over $A1.5 billion of non-performing commercial real estate loans onto the AMAL servicing platform, following the purchase by a global investment bank. The project included a full reconciliation of all loans since inception.
Transition of over $A250 million of commercial and residential mortgages in metropolitan and regional areas, following the purchase from the receiver by Deutsche Bank. Due to limited resources, significant IT support was required from AMAL and project management in country Victoria.
Transition of over 1,200 predominantly non-performing consumer loans. AMAL was provided with access to the system but no IT support. The AMAL IT team successfully analysed and mapped the database to enable the migration to AMAL's platform.
Established in 1994, AMAL is the region's leading receivables servicer and corporate trustee, with over $A30 billion of funds under administration and supervision in Australia and New Zealand. AMAL is also back-up servicer of over five million receivables. AMAL's servicing infrastructure includes industry-leading technology and support, a highly experienced management and operations team and a rigorous governance, risk and compliance program.
AMAL is ranked STRONG as a primary servicer by S&P and is accredited under the ISO27001 (Information Security), ISO9001 (Quality Management) and GS007 (Internal Controls) standards.
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