S&P Pitches 'Prudent Servicing'

In light of recent developments in the commercial mortgage-backed securities world, Standard & Poor's Ratings Services has clarified existing criteria regarding "prudent servicing practices."

Specifically, S&P recognizes the industry focus on how interest shortfalls affect senior classes of securitized transactions as well as the litigation surrounding representations and warranties covering alleged document deficiencies in loans comprising CMBS bonds.

S&P said that commercial mortgage companies on its Select Servicer list will be measured against these standards.

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