MCE Locam S.p.A. (“MCE Locam”) is an Italian-based financial institution that evaluates, acquires and collects non-performing loans (“NPL”) and originates cessione del quinto dello stipendio, or “CQS” loans, to Italian consumers. On the NPL side, the firm is active in the residential and commercial mortgage loan market, having acquired a number of secured and unsecured portfolios. Portfolios are usually sourced through bilateral negotiation or limited auctions, with a particular focus on financial entities and small-medium sized banks and financial institutions, often neglected by the larger investors.
To obtain a CQS loan, the borrower, often a public employee or pensioner, pledges up to one fifth of their salary or pension (the meaning of “cession del quinto dello stipendio”) for up to 10 years, and the pledged amount is paid by the borrower’s employer or pension plan directly to MCE Locam. MCE Locam obtains (at borrower’s expense) life and employment insurance on the loans to mitigate the risk of loss. The company is headquartered in Rome, with branches in Milan and Naples in Italy. MCE Locam sells its CQS production to a number of Italian banks which accumulate the product.
MCE Locam was the result of the October, 2018 merger between Locam S.p.A., which has been active in the Italian NPL market since 2002, and Mediocredito Europeo, which developed out of the Ktesios platform which was founded in the early 1990s. MCE Locam is licensed by the Bank of Italy as a financial institution under the recently adopted Section 106 licensing regime. Seer-managed funds own majority stake in MCE Locam.