Commercial and multifamily finance is a dynamic, growing, and changing industry. The servicing of commercial and multifamily loans is complex. Successful servicing requires complete industry knowledge. This course presents concepts critical to a well-rounded understanding of the commercial and multifamily servicing industry.

Get the foundation needed to become an effective loan servicer and commercial analyst. Learn the evolution of the commercial and multifamily mortgage loan servicing industry and the sources of funding for commercial loans. In addition, get a comprehensive understanding of available commercial products and finance vehicles as well as the relationships among the various parties. This course is suitable for anyone interested in learning the basic concepts supporting commercial and multifamily loan servicing.

Course Outline:

Lesson 1 - Creation of the Servicing Role

• The Role of the Servicer
• History of Servicing
• Influence of Technology
• Evolution of Servicing Responsibilities
• Ethics in Commercial Servicing

Lesson 2 - Servicing Relationships

• The Borrower
• The Lender
• The Servicer
• The Investor
• Other Players

Lesson 3 - Sources of Funding

• Funding Considerations
• Investment Banks
• Thrifts, Savings and Loans, and Other Banks
• Life Insurance Companies
• Ginnie Mae
• Government-Sponsored Enterprises

Lesson 4 - Financing Vehicles

• Market Overview
• Portfolio Transactions
• Commercial Mortgage-Backed Securities
• Government-Sponsored Enterprises
• Collateralized Debt Obligations

Lesson 5 - How Servicers Make Money

• Sources of Income Overview
• Servicing Fee Income
• Ancillary Fee Income
• Borrower-Request Fee Income
• Float Income
• Expenses and Costs Overview
• Corporate and Operational Costs
• Transactional Costs
• Systems Costs

Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or Certified Mortgage Technologist (CMT) designations. This course also earns five points towards MBA's Commercial Mortgage Servicer Achievement Certificate (Commercial CMS Level I).