Commercial Real Estate and Multifamily Servicer Loan Level Surveillance: Protecting the Property explores the commercial servicer’s role of monitoring the anticipated and unanticipated issues or events that may impact the performance of a commercial mortgage loan. The servicer's underlying goal is to collect and communicate loan information that will enable interested parties to protect the value of the property as collateral for the mortgage loan.

The course begins with a general introduction to servicer loan level surveillance, defining and describing the servicer’s surveillance responsibilities. The following lessons address servicing responsibilities related to monitoring compliance with loan document terms, monitoring the collateral, and monitoring the performance of the borrower and property against underwriting expectations. The course ends with a lesson explaining how the servicer communicates surveillance findings to the appropriate parties and steps they may take in response to surveillance findings.

Course Outline:

Lesson 1 - Surveillance Overview

• Introduction to Surveillance
• Surveillance Tools
• The Servicer's Role in Surveillance
• Ethics

Lesson 2 - Loan Surveillance

• Borrower Requirements
• Real Estate Taxes
• Property Insurance
• Reserves
• Other Loan Surveillance Items

Lesson 3 - Property Surveillance

• Risks Related to Property Type
• Property Inspections
• Special Property Considerations
• Tenants

Lesson 4 - Performance Surveillance

• Introduction to Performance Surveillance
• Financial Statement Analysis
• Monetary Default
• Non-Monetary Default
• Triggers and Compliance Tests

Lesson 5 - Communicating Surveillance Findings

• Reporting
• Watchlist Reporting
• Rating Agencies
• Next Steps

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).