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CRE Finance World, Winter 2012

Investment Grade Bondholder Forum Update — Trials and Tribulations of repeat borrowers previously defaulting on loans and placement The material is for informational purposes only and should not be regarded of subordinate or mezzanine debt held outside the CMBS trust. as a recommendation or an offer to buy or sell any product or service to Also, Special Servicing fee schedules need to be part of the which this information may relate. Certain products and services may not Investor Reporting Package because they can significantly vary be available to all entities or persons. from deal to deal. TIAA-CREF Asset Management provides investment advice and portfolio management services to the TIAA-CREF group of companies through the 4.Mandated use by the SEC, or voluntary use by issuers, of the following entities: Teachers Advisors, Inc., TIAA-CREF Investment Man- CREFC-completed and endorsed Model Representations & agement, LLC, and Teachers Insurance and Annuity Association® (TIAA®). Warranties to establish a solid baseline for investors regarding Teachers Advisors, Inc., is a registered investment advisor and wholly what is true about each loan, its collateral, and the underwriting owned subsidiary of Teachers Insurance and Annuity Association (TIAA). processes that were carried out when the loan was originated. 5.Use of the OA as a necessary structural enhancement to the CMBS model, ensuring that special servicers are doing their jobs properly while giving the OA the “teeth” and ability to police the trust, not just act as an administrative checkmark. Returning to this level of “old school” stability may be nothing more than a quixotic quest, but we must strive for more than the status quo. Taking a cue from what was done right and wrong between 1999 and 2004, and adjusting for the new world order of global contagion, true risk alignment, increased capital requirements and new stakeholder accountability can help CMBS return to firm footing in 2012 and beyond. CRE Finance World Winter 2012 72


CRE Finance World, Winter 2012
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