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.

1st Service Solutions Expands Leadership Structure, Names Steve Banegas President

1st Service Solutions, a leading borrower advocacy and loan resolution firm specializing in CMBS, CRE CLO, and agency-financed commercial real estate loans, today announced an expansion of its leadership structure designed to strengthen the firm’s continued growth and long-term strategic focus. Founder and CEO Ann Hambly, CRE, will assume the role of Chairman, while 13-year Chief Operating Officer Steve Banegas has been named President.

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.