CC_S_204.5 Communicating Commercial/Multifamily Surveillance Findings

The servicer is responsible for reporting commercial/multifamily surveillance findings to investors as set forth in the servicing agreement. The servicer may also be responsible for taking steps to minimize loss when a loan goes into default. This may involve either a workout or a liquidation of the property.

Communicating CMF Surveillance Findings looks at ways servicers communicate surveillance findings. It begins with a look at the types of reports that servicers must prepare for investors, focusing on remittance reports, delinquency reports, financial reports, inspection reports, and the Significant Insurance Event Report. Next, it examines the watchlist report, noting differences in watchlist reporting for portfolio and CMBS investors. The course then addresses the servicer's obligations to the rating agencies, who may require information from servicers in certain situations in order to evaluate bond ratings of CMBS pools. Finally, it describes steps the servicer may be required to take to minimize loss when loans default, including workout options such as forbearance and restructuring or liquidation options such as sale of the property, sale of the note, or discounted payoff.

This is a commercial/multifamily course.