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| *Loan,banking and credit>>>commercial loan |
What is the impact of a bank turning your commercial loan over to the managed assets division? |
good company, owners going through a divorce. 17 million in sales, profits dropping last couple years. All bills paid on time. Don't take this personal, the sale/transfer has nothing to do with you. Many banks, especially small ones, don't like to "shelve" (keep and service") loans in house. They'd rather get a whole bunch of them, package them together and sell them at a discount to some other company who is big enough to spread the cost of servicing the loans over a larger number of loans. This way, the bank can focus on doing what it does best (make loans) and leave the servicing part to the experts. The loans are sold at a discount because the purchasing entity must be compensated for the cost of servicing the loan. When a bank transfers or sells a loan, it also sells the terms of the loan. The entity that purchases the loan is fully bound to the same terms and conditions of the loan when it is written, so your safe insofar as the rate, term, late fees, etc will not change with the change in ownership. What could change, for better or for worse, is the customer service you receive from the new entity and the intensity collection procedures should you default or make late payments as these services and processes are not part of the terms and conditions of the original bank loan. Usually means that you're now in the hands of those who will take much more agressive action to collect $ owed. "no more Mr. Nice Guy". Law suits may soon follow. |
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