CREFC’s Servicers Forum
September 19, 2022
Together, Stacy, Leslie, Rich and Carl form the “Leadership Working Group” for the Servicers Forum and set agendas and priorities for the forum, as well as represent the constituency on CREFC’s Policy Committee.
Current issues include:
ESG and Servicers
- CREFC is well along in establishing a set of disclosures focused on the environmental side of the equation. This includes 51 data points relative to climate perils, energy consumption/production/efficiency, and greenhouse gas emissions.
- Working to address the other aspects of ESG in a uniform manner.
- Evaluating potential guidance and playbook opportunities related to ESG initiatives for servicers to be sponsored by CREFC.
LIBOR to SOFR Transition
- Implementation weighs heavily on the servicing community as we have been exploring how to implement the changes into day-to-day servicing operations for legacy loans and new issuance. This means deciphering myriad transition language variants within loan documents and discussing how to implement those changes with borrowers and what management of that entails, as well as encouraging consistency in new loan documentation and addressing licensing for the use of Term SOFR.
- Recommended guidance to be issued on behalf of CREFC for servicers once final Fed rules are published.
Topics discussed at the June conference included:
The leaders will also begin planning content for the January forum session. To join the Servicers Forum, please register here. For any forum related questions, please contact Kathleen Olin (email@example.com).
- Impressive handling of COVID forbearances and mods
- Pivot to WFH and now return to office
- Working through delinquencies
- Cyber risk / vendor management
- Division of duties between MS/SS/PS
- Servicing transfers
- Delays in reporting for CLOs
- Reporting timelines—CAs asking for shorter turn arounds from MS
- Staffing challenges
- Impact of rising interest rates
- Increased competition with respect to origination; impact on underwriting and documentation
- Impending maturity dates