DTCC’s Loan/SERV Reconciliation Service is a Web-based service that enables syndicated loan agents and lenders to reconcile loan commitments and transactions on individual loans. This allows both the agent and lender to view and reconcile their loan positions on a daily basis rather than periodically or after a scheduled payment date.

Overview

DTCC’s Loan/SERV Reconciliation Service is a Web-based service that enables syndicated loan agents and lenders to reconcile loan commitments and transactions on individual loans. This allows both the agent and lender to view and reconcile their loan positions on a daily basis rather than periodically or after a scheduled payment date.

Who Can Use the Service

Any loan market participant can use the Loan/SERV Reconciliation Service.

Benefits

• Delivers greater certainty to loan position records by enabling early identification of differences resulting from assignment and life-cycle event processing.
• Reduces incorrect accrual amounts resulting from position errors.
• Reduces adjustments in cash positions that need to be resolved after cash payments have been made.
• Provides lenders access to agent information, thus reducing telephone calls requesting data to resolve differences.
• Reduces back-office costs for agents and lenders by reducing the time spent on post-settlement issues.
• Builds the foundation for further automation in loan position maintenance.

How the Service Works

Agents send details of commitment balances and transactions that change those balances, such as assignments or commitment reductions, to DTCC Loan/SERV on a daily basis. Lenders have a choice: they can view and download the agent information for their own processing or, they can provide data to DTCC for reconciliation.

When a lender chooses DTCC for reconciliation, the lender submits transactions and position balances to DTCC. DTCC compares the data against agent submissions and, via a Web interface, displays the differences online for both the agent and lender. If differences occur, the system allows both agents and lenders to highlight the erroneous records and communicate a proposed resolution.

For lenders who do not want the full reconcilement service, DTCC offers position reporting where a lender can view the agent position records and transactions online and notify the agent whether they agree or disagree with the current position. System security provides that market participants only have access to position details where the agent determines they are a lender of record.

For More Information

Please contact Christopher Childs at (212) 855-2331 or cchilds@dtcc.com.