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CREFC IRP Watchlist Criteria and Format Changes

May 28, 2015

The CRE Finance Council (CREFC) originally developed, and currently maintains, a standardized Investor Reporting Package (IRP) for the CMBS industry. Freddie Mac has adopted the IRP for use in reporting on K-Deals and other Freddie Mac securitizations.

In April 2014, CREFC adopted revised IRP Watchlist criteria, as well as some format changes, which will go into effect on June 30, 2015. The long lead time between the adoption and effective date was to provide all participants the time needed to implement the changes. We expect all Servicers participating in the Freddie Mac securitizations to adopt and adhere to the changes.

The change efforts started in the fall of 2013 when CREFC launched an initiative to conduct a comprehensive review of the IRP Watchlist. The result was a series of enhancements to the criteria, and creation of the CREFC IRP Servicer Watchlist Implementation Guideline, available on the CREFC website.

One of the more notable changes will be a new field to classify Watchlist items as “Credit” or “Informational.” The new identifier will help provide added transparency to investors and allow greater flexibility in managing the volume of loans on Watchlist. Other changes to the Watchlist include:

  • three additional fields: Informational or Credit, Most Recent Physical Occupancy, Most Recent Occupancy as of Date
  • deletion of codes that were no longer in use and addition of new relevant codes, and
  • updating existing code thresholds (see the CREFC Watchlist Change Matrix, also available on the CREFC website.

The Implementation Guidelines document was developed to assist servicers in applying the updated codes, as well as to provide guidelines and best practices for drafting comments and applying the new Credit and Informational fields.

For more information, please also see the CREFC Watchlist and Portfolio Review Guidelines, available on the CREFC website.

Webinar on June 11th to Review Changes

Freddie Mac will host a webinar on June 11, 2015, from 1:00 p.m. – 2:00 p.m. ET, to review the changes and provide an opportunity for our Servicer network to ask any questions. Register at: CREFC Watchlist Customer Education Webinar.


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