In the most general of terms, asset management is the professional management of an asset or group of assets to meet specified goals for the benefit of lenders, investors, and borrowers. In the case of commercial lending, the assets are commercial real property and the loans that secure them. Asset management is one of the most important functions of the commercial servicer.
Designed for commercial mortgage servicing professionals with 4-7 years' experience, Asset Management in CRE & Multifamily Lending provides critical concepts for making management-level decisions related to asset management functions. It begins with an overview of the asset management function: what it is, what tools servicers use to perform asset management functions, who the players are, and ethical considerations related to asset management. Next it examines critical concepts to property surveillance: the purpose and use of operating statements, why and how to perform property inspections, and how the role of the servicer in managing real estate taxes and insurance. The course then addresses how asset management considerations affect the way servicers handle various types of borrower requests, from fairly common requests such as reserve draws and lease reviews to special requests such as assumptions and partial releases. The final lesson addresses asset management considerations in the handling of default, bankruptcy, and foreclosure.
Course Outline:
Lesson 1 - Asset Management Overview
- Goals of Asset Management
- Players in Asset Management
- Role of the Servicer in Asset Management
- Asset Management Tools
- Interview with an Expert
Lesson 2 - Property Surveillance
- Introduction to Property Surveillance
- Financial Statements
- Property Inspections
- Watchlists
Lesson 3 - Common Borrower Requests
- Introduction to Borrower Requests
- Reserve Draws
- Lease Reviews and Subordination Requests
- Defeasance
- Ground Leases
- Easements
- Condemnations
- Property Management Changes
- Budget Approvals
Lesson 4 - Special Borrower Requests
- Assumptions
- Subordinate Financing
- Modifications and Extensions
- Partial Releases
- Property Substitutions
Lesson 5 - Default Management
- Introduction to Default
- Default Collection Strategies
- Bankruptcy
- Foreclosure
- Real Estate Owned
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