New Loan Document Review - 1st Service Solutions

New Loan Review

Before signing new loan documents, have our CMBS experts review the draft loan documents

NEW LOAN DOCUMENT REVIEW

Before signing new loan documents, have our CMBS & CRE CLO experts review the draft loan documents for business terms that will make your loan more flexible and less painful. We will not be focused on the economic deal terms, but rather the verbiage that we know causes the most concern after closing.

3 Types of COVID Relief

The 3 Types of COVID relief for CMBS BorrowersOctober, 2020 by: Ann Hambly Blogs News SuccessesThese are just guidelines. There are no standard packages being offered and all require extensive and time consuming negotiations. Your CMBS advisor will share with you the...

Examples Include

Simple changes in the loan documents can save time and money

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Late Fee

Definition of late fee should include “excluding balloon payment”. Without these three words, the servicer will be able to charge a late fee on the balloon payment.

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Springing Lockbox

For springing lockbox arrangements, the definition of DSCR often contains many adjustments the servicer is allowed to make which greatly impact the DSCR and the servicer’s calculation is what determines when cash management is sprung. The words in this section of the loan agreement can be “deadly” to a borrower post-closing. We will provide guidance on ways to make this more reasonable and yet palatable for CMBS.

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Unfunded/Reserve Draw Procedures

For CRE CLO loans past closing draw funding or funded reserve draw procedures often contain hurdles and obstacles to funding. We will provide insight to how language can be adjusted to make the draw / funding process smoother.