CMBS Under Stress: Frequently Asked Questions About Key Provisions in CMBS Pooling and Servicing Agreements Addressing Mortgage Loan Modifications

June 08, 2010
With the ongoing credit crisis and continuing deterioration of commercial real estate, it is critical for investors in commercial mortgage-backed securities to have a clear understanding of how pooling and servicing agreements (PSAs) for CMBS affect a servicer’s approach to dealing with troubled commercial real estate loans. This article examines 10 frequently asked questions about key provisions in PSAs that govern modifications of commercial mortgage loans by servicers with a focus on distressed commercial mortgage loans.