Representing lenders and servicers of multifamily loans often go hand in hand, particularly given program specifics, the underlying transaction documents, and the requirements of repeat borrowers. We are familiar with all aspects of Fannie Mae and Freddie Mac servicing requirements, as well as those related to pooling and the agreements associated with servicing and subservicing in securitized loans.
- Servicer Consents to Borrower Requests and Assumptions: We represent clients in all manner of requests and matters related to:
- Approvals of easements.
- Cable and internet service agreements.
- Transfers of interest in the borrower structure.
- Assumptions of loans.
We have extensive experience related to multifamily property being acquired and existing financing being assumed, and with crafting the necessary modifications to GSE standard form documents. Having been involved in modifying successive generations of documents to address deal-specific underwriting and borrower structure issues, we have a comprehensive understanding of the parties’ intentions, along with the form, substance, and approach that have characterized the best practices in representing the lender. This is critical when supplemental financing is added to an assumption transaction because the new debt must be documented consistently with the existing debt, often using distinct forms with significant differences.
- Servicing Structures and Standards: We represent master servicers and subservicers, making us uniquely qualified to advise on requests related to Freddie Mac CME transactions. In these securitized transactions requiring adherence to Freddie Mac’s servicing standard, the preference is for one counsel to represent the servicer/lender side of a deal. We are familiar with REMIC requirements, and our tax partners are prepared to issue a legal opinion addressing any issues that may arise.
- Servicing Related to Special Situations: In conjunction with the firm’s environmental, litigation, and bankruptcy and restructuring attorneys, our capacity extends to a variety of environmental, creditor’s rights, and general commercial litigation work related to multifamily financings. We assist clients in negotiating and documenting the transfer of servicing rights.
