NEW YORK, Feb. 4 /PRNewswire/ -- 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.
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Mark I Goldberg, +1-212-438-7779, or Roy
Chun, +1-212-438-2430, both of Standard & Poor's
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