April 1, 2016
We’ve recently issued the following changes and clarifications to our loan documents and final delivery process for Small Balance Loans (SBL), intended to streamline the process and reduce errors:
- Streamlined Final Delivery Instructions and Table of Contents
- New York Consolidations
- Seller Representations and Warranties
Streamlined Final Delivery Instructions and Table of Contents
Our purchase and legal teams heard your requests. The Final Delivery Instructions and Tables of Contents (TOCs) for Core and Non-Core Final Delivery Packages are now trimmer, simpler and consistent with current SBL program requirements. The revised delivery documentation will result in a more efficient and streamlined delivery process for SBL Sellers and Single Counsel. The revised TOCs for Core and Non-Core final delivery packages will be required for all loans with Commitment/ERLAs with an Effective Date of April 1 or later.
These documents are posted on our Small Balance Loan Documents page, under the Resources tab.
New York Consolidations
We revised our form Consolidation, Extension and Modification Agreement (3-22-2016) (CEMA) and created a form of NY Consolidated, Amended and Restated Note – SBL (04-01-2016) (NY Consolidated Note – SBL).
You are no longer required to attached to the CEMA an exhibit with a list of the underlying notes being consolidated, reducing the possibility of needing to re-record CEMAs to correct errors. The revised form CEMA and new NY Consolidated Note – SBL will be required for all SBL New York consolidation loans with Commitment/ERLAs with an Effective Date of April 1 or later.
These documents can be found on our SBL Borrower Documents page.
Seller Representations and Warranties
We have posted a new version of the Seller/Servicer Representations and Warranties – Small Balance Loans (4-1-2016) on our Small Balance Loan Documents page, under the Resources tab.
The only change is to the first representation, which deals with crossed loans. We revised the representation to clarify that senior/subordinate loans are a subset of crossed loans. We are making similar changes in our K-deal representations. Since we do not contemplate crossed loans or existing subordinate debt in the SBL program, the revision does not have a substantive programmatic impact, but we wanted to be sure you understood the nature of the change.