Viewing Loan Origination From a Servicing Perspective: Avoiding Issues for Lenders and Borrowers During a Loan’s Term
Taking a Close Look at Assumptions, Equity Transfers, Guarantor Replacements, Cash Management and Operational Issues
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will address provisions that should be considered at the time of origination of a loan to avoid issues for lenders and borrowers during the loan’s term. The panel will focus on how loan terms related to assumptions, equity transfers, guarantor replacements, cash management, and operational issues can create problems for lenders and borrowers alike during the life of the loan.
Outline
- Overview: life cycle of a loan
- Importance of considering loan servicing at the time of origination – how will your loan terms be interpreted over the term of the loan?
- CMBS loans
- Balance sheet loans
- Common issues
- Assumptions
- Equity transfers
- Guarantor replacements
- Cash management
- Operational issues
- Conclusion
- Getting both parties on the same page is critical to avoiding issues during the loan term
- For CMBS or other securitized loans, it is important to address issues on the front end to avoid problems on the back end
Benefits
The panel will address these and other key issues:
- Why should lenders and borrowers consider potential servicing issues when a loan is originated?
- What contingency plans or terms can be put into place to avoid these issues?
- What happens if a loan document permits a borrower to do something that a CMBS trust lender cannot allow them to do?
- How does the approval process work for non-permitted equity transfers and assumptions for a CMBS or CLO transaction compared to a balance sheet loan?
- What are drafting considerations for change of control and transfer provisions in loan documents?
Faculty
James P. Litwinovich
Partner
Alston & Bird
Mr. Litwinovich represents institutional lenders in sophisticated commercial real estate secured financing across a... | Read More
Mr. Litwinovich represents institutional lenders in sophisticated commercial real estate secured financing across a diverse array of asset types, such as multifamily, office, industrial, retail, and mixed-use. He works alongside clients across the United States with their complex real estate financing transactions, including acquisition and development loans, construction and bridge loans, permanent financing, and mezzanine and other subordinate financing.
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Joseph Natt
Attorney
Alston & Bird
Mr. Natt is part of Alston & Bird’s Real Estate Group. He focuses his practice on commercial real estate... | Read More
Mr. Natt is part of Alston & Bird’s Real Estate Group. He focuses his practice on commercial real estate finance. He represents a variety of lenders and servicers in a broad range of commercial real estate finance transactions, including commercial mortgage loan originations, repurchase and warehouse facilities, and special servicing and master servicing matters. Mr. Natt also represents broker dealers and other financial institutions in the purchase and sale of distressed loans and other assets.
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Seaira R. Wolf
Partner
Alston & Bird
Ms. Wolf is a partner in Alston & Bird’s Real Estate Group. She focuses her practice on commercial real... | Read More
Ms. Wolf is a partner in Alston & Bird’s Real Estate Group. She focuses her practice on commercial real estate finance and loan servicing. She represents institutional and nonbank lenders, financial institutions, and servicers in a broad range of commercial real estate finance transactions, including commercial mortgage conduit, bridge, and construction loan originations, repurchase and warehouse facilities, and special servicing and master servicing matters.
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