Credit Suisse Adding Seller/Servicer Guide

With loan servicers facing a possibly unprecedented increase in delinquencies and defaults, Credit Suisse has announced that it is developing a seller/servicer guide to help servicers better understand what they can and cannot do to manage defaults and limit loss exposure.Speaking at the Western States Loan Servicing Conference in Las Vegas, Matthew Kobin of Credit Suisse Securities said many changes are under way in the area of servicer surveillance. He said the seller/servicer guide, similar to those used by Fannie Mae and Freddie Mac, will help bring transparency to participants in the company's private-label mortgage-backed securities program by setting forth acceptable loan sale and servicing parameters. One goal is to help servicers understand when they can approach borrowers about a possible loan workout and what workout options are acceptable. He said the guide should "demystify acceptable servicing" at a time when servicers are facing many questions related to the handling of subprime, alternative-A, and adjustable-rate loans that face payment resets.