|S&P Endorses CMSA/MBA Checklist for Closing Docs
NEW YORK, Feb 4, 2002 /PRNewswire via COMTEX/ -- Standard & Poor's announced today its endorsement of a recommendation made by the Joint Commercial Mortgage Securities Association/Mortgage Banking Association (CMSA/MBA) CMBS Loan Integrity Task Force on document defects. Specifically, that beginning March 1, 2002 all closing agents use the recommended loan document checklist developed by the task force. The checklist, together with the joint committee's final report-which schedules documents into several categories (critical, basic, transfer, and specialized property) along with severity, remedy levels and timeframes for curing-provides a solid foundation for ensuring loan documentation and decreased risk of potential loss and delays for securitized transactions.
"The task force's efforts have served to limit future complications and exposure to rise from incomplete or defective loan files. This is a significant improvement," said Roy Chun, director of Structured Finance CMBS Surveillance.
The report reflects efforts from all sides of the closing table (originators, issuers, investors, servicers, trustees, attorneys, and custodians) to develop a "Best Practices" standard that should be followed by all. Additionally, Standard & Poor's commends CMSA/MBA for establishing the task force as an ongoing committee to further "refine and expand these 'Best Practices,'" as noted in their final report. Standard & Poor's intends to monitor compliance in clearing missing documents as part of its Servicer Evaluation process.