To create a guide for commercial servicers to facilitate processing post-closing special borrower requests.

Processing:

Special Borrower Requests (e.g. assumptions, easements, partial releases) can be a very time-intensive and frustrating experience for all parties involved, including the borrower, investor, primary servicer and master servicer. Much of this frustration and inefficiency is due to the lack of detailed guidelines in servicing agreements and loan documents instructing the parties what documents are needed for a particular request.

Background

Through the suggestion of the Asset Administration Committee of the MBA, a task force was created to develop a series of checklists aimed at facilitating the processing of some of the most common borrower requests:

The task force began its process by gathering various form letters/checklists used by servicing firms and portfolio lenders. These were then combined onto a master grid. This grid, in connection with each type of request, was then reviewed by the committee during a series of conference calls.

Implementation

Upon receipt of any special borrower request, a review of the loan documents and servicing agreement should be completed to determine if there are specific requirements. In addition, a review of the loan status (payment history, financials on file, tax and insurance evidence on file, etc.) should be completed to obtain an overview of the asset.

Once an overview of the loan is completed, the checklists should be referenced to aid in information gathering. Absent specific requirements in the loan documents or servicing agreement, the tab relating to the request in question should be referenced.

In addition, it is advised that the list of possible data requirements, which is the global list of all data items contained on each list, be reviewed. A customized checklist can then be created to meet the needs of your loan request.

Please keep in mind that the checklists are not intended to fit every request but rather to serve as a guide for information that should be considered. Also, you may find a borrower request fits into two or more categories and, therefore, the checklists should be combined (e.g. Assumption and Secondary Financing). Furthermore, the checklists are intended to cover portfolio lender and CMBS loan requests, and are not intended to tackle the agency requirements as each of these groups have comprehensive guides and manuals detailing their requirements.

Directions For Using The Checklists

Please click here in order to access the Special Borrower Requests Checklists. Once you are in the excel document you will find tabs on the bottom of the page for each of the fifteen requests covered by the task force. Please click on the tab for the special borrower request that you are processing. You will be led into an excel file listing all documents required for that particular special borrower request.

Feedback

We encourage feedback from the mortgage banking community and users of the checklists. Comments and questions can be sent to Tahir Naseem and/or Debbie Rogan. It is the intention of the task force to regularly update the checklists and to incorporate enhancements and suggestions made by its users.