Loan servicers forced by crisis to take a more active role in securitised loans

Because the crisis has altered the finance-institutional landscape and often eliminated firms originally involved in securitised debt, loan servicers are playing a growing role, says the Managing Director of European servicing group Hatfield Philips. "We've gone away from administration, and become loan managers now," Clarence Dixon told PIE in an interview.

"The servicer's role has de facto changed from being purely administrative to more custodial, and the need for due diligence by all parties." London-based Hatfield Philips, owned by US private equity group LNR Property, has serviced more than 359 commercial loans with a combined value of £29bn and acted as special servicer for over £31bn. Collateral locations included UK, Germany, Italy, Sweden, France Switzerland and Benelux.