Pooling and Servicing Agreements: What CMBS Borrowers Need to Know
A pooling and servicing agreement (PSA), is a contract that is required when loans, including CMBS loans, are pooled together and packaged into mortgage backed securities. For CMBS loan borrowers, this means that they must abide by both the terms of the loan agreement, and by the terms of their loan’s pooling and servicing agreement.
CMBS Servicing: What Borrowers Need to Know
Unlike traditional bank loans, CMBS loans are not serviced by the lenders that issue them. Instead, after conduit loans are securitized and sold as commercial mortgage backed securities, they are serviced by third-party companies. In general, borrowers do not have any say in the companies that service their loans; this is decided by the lender.