Initial conversations were held with each of the Rating Agencies to ensure their buy in on such an initiative. A field by field comparison of primary and master servicer Rating Agency data requests and IRP fields has been completed to determine where current overlap exists. The working group will be soliciting volunteers who will produce information in order to compile comments/frustrations with the current process to make sure we are working toward the proper objectives. Best Practices for Reporting on Excess Liquidation Proceeds This best practice working group was formed as a result of discussions held at CREFC’s 2014 Annual Conference IRP Committee meeting. The working group addressed reporting issues under circumstances when there is an REO loan that subsequently is sold and results in excess proceeds. A final best practice draft will be in effect by year’s end. Best Practices for Writing-off B-notes and Realized Loss Reporting This best practice working group was formed as a result of discussions held at CREFC’s 2014 Annual Conference IRP Committee meeting. The working group will develop best practices on reporting subsequent losses on B-notes in a modified loan situation. A final best practice draft will be in effect by year’s end. New and Revised Watchlist Criteria Last fall CREFC launched an initiative to perform a comprehensive review of the current Watchlist criteria and reporting practices with the objective of making recommendations to enhance the value of the Watchlist to market participants, especially investors. The Watchlist serves as an early warning system that identifies loans with a high potential for default. As a result of several months of working group meetings along with input from the Servicers Forum and IG Bondholders Forum, the IRP Committee and Watchlist Subcommittee have approved CRE Finance World Winter 2015 44 proposed changes to the CREFC Watchlist, Portfolio Review Guidelines, and newly created Implementation Guideline. The contains best practices for commentary and provides further clarification for triggers. One of the biggest changes users of the Watchlist will find is the creation of a “Credit or Informational” column on the Watchlist and in the Portfolio Review Guidelines to accompany each trigger. The purpose of this new column is to help users navigate the Watchlist more efficiently so that loans triggering for “Credit” issues are easily identified. The implementation date for these updates is June 1, 2015. Loan and REO Liquidation Reports Best Practices The Loan and REO Liquidation Reports best practices working group was created to develop a best practices document. The working has addressed the following issues: • Determine what codes from the IRP file can be auto populated to the Loan and REO Liquidation templates • Reach out to the investor community and solicit their feedback on the reporting of loan and REO resolutions • Establish consistent information reported on the Loan and REO Liquidation Templates (i.e. add/delete fields, participated loans, multi-property loans) • Clarify fields reported on the Loan and REO Liquidation Templates (i.e. total fees to special servicer affiliated entities) • Identify reporting contacts at the Master Servicer and Certificate Administrator for template submission CREFC held an open comment period from July 31 to August 15, 2014 for members to submit their input on these proposed changes. The best practices were then adopted and will be incorporated into the IRP by year’s end. Servicers Forum Update
CREFW-Winter Edition
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