Within every commercial/multifamily servicing organization there are various operational duties that are essential to the successful management of a servicing loan portfolio. These duties involve the management of cash, the processing of loan transactions and events on a servicing system, reporting to internal and external investors, tax administration, and insurance administration.

Servicing Operations in CRE and Multifamily Lending begins with a broad overview of servicing operations, including an introduction to servicing operations, the players in servicing operations, the role of servicing operations, the importance of compliance, and management tools. Next, the course looks at system processing, examining common systems and loan boarding, billing and payment processing, system modifications and file maintenance, and ARM administration. The course then addresses escrow-related issues, including taxes, insurance, escrow analysis, and reserves. The final lesson examines additional servicing operations duties, including payoff processing and defeasance, cash management, additional loan transactions (LOCs and UCCs), investor reporting and remitting, and portfolio accounting/cash reconciliation.

Course Outline:

Lesson 1 - Overview of Servicing Operations

• Basics of Servicing Operations
• Role of Servicing Operations
• Audit and Regulatory Standards
• Management Tools
• Interviews with Servicing Operations Experts

Lesson 2 - System Processing

• Common Servicing Systems
• Loan Boarding
• Billing and Payment Processing
• System Modifications and File Maintenance
• ARM Administration

Lesson 3 - Tax and Insurance Escrow Administration

• Basics of Tax Administration
• Basics of Insurance Administration
• Escrow Analysis

Lesson 4 - Additional Servicing Operations Duties

• Payoff Requests
• Collateral Monitoring
• Cash Management
• Investor Reporting and Remittance
• Portfolio Accounting and Cash Reconciliation

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 Servicer Professional Certificate (Commercial CMS Level II).