CMBS Financing Blog
Learn everything you need to know about CMBS loans, including terms, property types, prepayment penalties, lenders, and more.
Pooling and Servicing Agreements (PSAs) are highly detailed legal documents that define all aspects of a CMBS loan, including the rights and responsibilities of the borrower, the lender, the master servicer, the special servicer, and the CMBS investors.
CMBS loans are not serviced by the lender who issued the loan and are instead serviced by third-party entities referred to as master servicers. In many situations, the master servicer will assign the day-to-day servicing duties to another entity, known as a primary servicer.
Special servicers handle the servicing of CMBS loans before and during loan defaults-- but they don't always have the borrower's best interests in mind. A servicer may attempt to help the borrower achieve a loan modification, or, more commonly, they may attempt to repossess the property in order to make the CMBS investors whole.
If you’re looking for a CMBS loan for a multifamily or commercial property, leave it to our team of experienced capital markets advisory partners. Fill out a form today to get a free quote from an experienced commercial mortgage banker today!
