Regulatory Alerts2021-11-11
Servicers in Securitization Transactions: Risk Profiles and Supervisory Guidelines
The Bank of Italy issues supervisory guidelines to address operational and reputational risks arising from the growing market of non-performing loan securitization and the associated servicing activities. The document mandates that supervised servicers maintain full organizational control and accountability over recovery processes, rejecting practices that marginalize their role in favor of unregulated special servicers. Additionally, the Bank requires the implementation of new semi-annual reporting templates to ensure transparent and comparable data on transaction performance for regulatory oversight.
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