Special Servicer Transfers Best Practices
(Chaired by Tom Nealon of LNR Partners, Chris Nuxoll of U.S. Bank, Kenda Tomes of Stinson Leonard, & Lindsey Wright of C-III Asset Management)
Best Practices related to Special Servicer Transfers
Earlier this year, in response to member requests, CREFC created a Special Servicer Transfers Working Group to address the challenges that arise when dealing with the transfer of the named Special Servicer on a CMBS trust through industry best practices. These best practices were created based on feedback from various members of CREFC comprising all of the major CMBS constituencies, including most Rating Agencies, Special Servicers, B-Piece Buyers Forum representatives and IG Bondholders Forum representatives. CREFC’s Special Servicer Transfers Best Practices document contains best practices and educational material on the following:
- Initial notices and communication as it relates to effectuating a termination of the Outgoing Special Servicer and replacement with the Successor Special Servicer and procedures to facilitate the transfer of special servicing rights, duties and responsibilities and the roles and responsibilities of the Control Person, the Trustee and other parties to the Special Servicer Transfer;
- Fee sharing between Outgoing Special Servicer and Successor Special Servicer;
- Notices and communication to be sent after the Special Servicing Transfer; and
- Logistical, reporting, and servicing matters as it relates to the mortgage loans and REO Properties owned by trusts.