The intent is for servicers to be held to the same standards regardless of their regulator and regardless of whether the loans being serviced are held on the originator’s books, have been sold, or have been securitized.
There are risks on both sides here. Too lenient an approach to loan recovery will result in an intolerably heavy bill for the Exchequer and hence the taxpayer and the user of public services. Too much reluctance to face up to reality about unsustainable debts will also delay the economic recovery.