EuropeServicing 2005 Program Agenda

EUROPESERVICING 2005: DRAFT PROGRAM AGENDA (as of 16 May)
Friday 3 June 2005

*TO BE CONFIRMED

08.30	REGISTRATION, COFFEE AND REFRESHMENTS

09.00	SHIFTING FOCUS FROM FUNDING TO SERVICING Maximizing growth, managing operational risk and recovering asset value in the European servicing sector TONI MOSS, MATT GILMOUR and RUDOLPH DONKERS Brief history of developments in the European servicing sector The competitive landscape - who are the players in what markets The role of servicing in strategic European mortgage value chain trends including operational risk management, regulatory compliance, cross-selling and cross-border lending Where servicing stands with regard to EU single market integration and the Financial Services Action Plan

09.30	LEGACY OR LEADERSHIP European mortgage servicing in a world class context
	ANNE BRIDGES, Head of Securitisation, Hatfield Philips International HELENA DAY, Vice President, Morgan Stanley Mortgage Servicing DIANE PENDLEY, Managing Director, FitchRatings RON ROARK, Chairman, Crown Mortgage Management Ltd. ANGEL TELLO, Capital Markets Division, Caixa Catalunya
	Until recently, the predominance of on-balance sheet funding in Europe has left the role of servicing undeveloped due to the bundled nature of the value chain throughout many (though certainly not all) European markets. The improvements of technology; the emergence of securitization, related investor demand and the innovation of structured covered bonds on the funding side; the dramatic increase in regulation upon lenders and the drive toward a single market have raised the profile of servicing as a crucial sector in need of further development. EuroCatalyst succinctly states that servicing is the centerpiece of the value chain thus European mortgage markets are only as strong as their servicing capabilities. Inevitably all international market developments are discussed in comparison to the United States and by default, the US continues to be used as the model for what could or should happen in Europe. However, the US servicing industry itself is in dire need of an overhaul. This session looks at whether the complexities of servicing in Europe can be overcome to take the best American models, leave the rest and transform the European sector into a position of global leadership.

10.45	REFRESHMENT BREAK

11.00	THE EVOLVING SPECTRUM OF SERVICING ALTERNATIVES After a decade of outsourcing in Europe, how has the third party sector fared?
	GLENN AARONSON, President, SIB/Corso Venezia STEVE HAGGERTY, Managing Director, Homeloan Management Ltd. RYSZARD KRUSZEL, Director XXL, STATER NV PAUL ROWBOTHAM, Director of Investor Relations, SPML IAN STEWART, Head of Securitisation and Structured Analysis, HBOS
	Since the establishment of Italy's SIB in 1986 and the creation of UK-based Homeloan Management in 1988, third-party mortgage administration in Europe has grown steadily in correlation to the unbundling of European markets driven by securitization and off-balance sheet funding. In the past decade the industry has witnessed spectacular successes and disappointing failures by early pioneers, many of whom continue to bear the burden of driving an entire industry sector forward. Benefitting from hindsight it appears that the primary catalyst behind decisions to retain or outsource servicing have been driven by the costs of technology, followed by capacity, local expertise and the willingness of management to allow outside access to sensitive internal information. The session is a cross-section of the European market including three pioneers who have led the market as third-party servicers in three different countries; one lender who initially outsourced servicing and later brought the servicing back in-house to emerge as a leading special servicer; one of the best examples of the shared utility model and the largest residential lender in Europe.

12.00	LUNCH

13.15	WHERE THERE'S CONFUSION, THERE'S PROFIT When good loans (and markets) go bad: Creating value from sub- and non-performing loans
	GLENN AARONSON, President, SIB/Corso Venezia ASINA AJWANI, Associate Director, FitchRatings MARC BAJER, CEO, Via Capital MARKUS ENDERS, Head of European Portfolio Management, Hypo Real Estate Bank International GUENTHER GLEUMES, Director, Citigroup
	The dominance of capital market and funding issues has led many European mortgage industry leaders to comment, "who cares about servicing?" Other than rating agencies, servicers and more recently, investors, the tendency to downplay or ignore servicing issues appears to be a universal phenomenon. Until, of course, it's too late . . . Although risk management and loss mitigation ultimately begin in underwriting, servicing and operational efficiency can dramatically increase or minimize credit risk. This session looks closely at the evolving spectrum of loan performance, strategies for asset disposition and the emergence of the highly specialized sector appropriately named "special serving". Our discussion focuses on economic downturns in housing markets and the strategies behind the management, remediation and disposition of non-performing loans in the commercial real estate sector. Will European players apply strategies from the US banking crisis to buy NPLs cheap and liquidate, will they remediate, repackage and sell to other buyers, will the securitization of non-performing loans continue to grow or will a new European model emerge?

14.30	FIGHTING AMONG THE FOOD CHAIN AND SURVIVAL OF THE FITTEST Where lenders, packagers, intermediaries and servicers collide
	THOMAS KRETSCHMAR, Chairman, Hypoport AG CRAIG BERESFORD, Head of Asset Sales, GMAC-RFC PETER BESUIJN, Director, Quion Groep BV WAYNE SMETHURST, Senior Partner, The Finance Centre DAVID TWEEDY, Managing Director, Platform Home Loans
	Where prime mortgages constitute a numbers game driven by volume and scale, by nature non-conforming and sub-prime lending demand more labor and documentation in what is already the most complex aspect of the entire mortgage value chain - the mortgage fulfillment process. Clearly, future growth in European markets will come from new products characterized as non-conforming and sub-prime lending which require increased and/or specialized capabilities to collect and organize the increase in related loan documentation. Driven by ambition, innovation and access to technology, the capabilities of packagers have grown to exceed in-house capabilities of many lenders, leading some packagers to seek lending status. The same drive for purpose and profit has led servicers toward front office activities in order to provide over-capacity resource for lenders. Meanwhile, lenders are left in competition with their own service providers to enable tools for brokers and product distribution, and residential servicers are increasingly beefing up capabilities to pursue commercial opportunities. This session brings together the new breed of hybrid players from the UK, the Netherlands and Germany to debate how these developments are impacting the bottom line and their implications for the rest of Europe.

15.45	REFRESHMENT BREAK

16.00	INCREASING SCRUTINY ON THE SERVICING SECTOR Differentiating good servicers from bad servicers and professional servicers from service providers
	JEAN LOUIS BRAVARD, Managing Director, Global Financial Services Industry, EDS MIA DRENNAN, Vice President, Global Trust Services, Bank of New York YARON ERNST, Senior Credit Officer, Moody’s Investors Service BRIAN KANE, Director of Structured Finance Ratings Services, Standard & Poor’s EDWARD REGISTER, Director of European Servicer Ratings, FitchRatings WILL ROSS, Director and Head of Global ABS Research, ABN AMRO Asset Management
	Other than rating agencies, research analysts and servicers themselves, who really cares about servicer quality - and how much more will people care as housing markets face economic downturns? Why should reporting standards be the benchmark for all servicers? What can European servicers learn from the 2005 (US) SEC regulations for issuers of asset-backed securities? What are the differences between BPO, ASPs and third-party administration and why would that matter? Are servicer ratings the only differentiator between servicers and service providers? Who should be assessing servicer quality? Given the commercial nature of rating agencies, should national or regional regulators be the ones calling the shots? How can the servicing sector improve self-regulation in preparation for the inevitable regulation that will be imposed upon it? As servicers cross borders, to whom should they be accountable? How do investors perceive the differences between servicers? When will servicer quality be reflected in RMBS and CMBS pricing? How has the Mortgage Conduct of Business (MCOB) affected servicers in the UK? How will regulatory changes in asset-management impact mortgage servicing

17.00	A PLACE IN THE SUN Creating a dedicated advocacy group for the European servicing sector
	JEREMY DEACON, Associate Director, FitchRatings CLARENCE DIXON, Managing Director, Continental Europe, Crown Mortgage Management STEVE HAGGERTY, Managing Director, Homeloan Management Ltd. HARRY GROENEVELD, CEO, Quion BV HANS-JOACHIM MICHEL, General Manager, STATER Germany
	Although industry insiders cite a critical need to improve the overall servicing sector, the vast differences in European markets and lack of coordinated communication has left servicers on their own to define and differentiate their capabilities throughout European markets. While the CMSA has succeeded in establishing standardised investor reporting for CMBS, the residential servicing sector has seen individual firms organizing their own an ad hoc group in the UK and FitchRatings recently organized the first Round Table for European servicers this year. However, to date no European advocacy group exists to specifically focus on the needs and advancement of servicers in Europe. This session outlines the specific needs of the servicing sector, discusses whether or not there is an urgent need to create an advocacy group and if created, what its primary mission should be and whether or not existing trade organisations or firms are best placed to take up its cause.

18.00	NETWORKING AND COCKTAIL RECEPTION