Master servicer
Asset-Backed Securities glossary · Asset Specific Nuances
Definition
In CMBS, the primary loan administrator responsible for performing loans; hands off troubled loans to the special servicer at default.
Master servicer in plain English
Think of a big pool of commercial-property loans (offices, malls) that were bundled up and sold to investors — that bundle is called CMBS. Somebody has to run the day-to-day admin: collect the monthly payments, track taxes and insurance, send statements. That's the master servicer, and their job is the loans that are behaving normally. The moment a loan goes bad — the borrower stops paying — they hand it off to a specialist called the special servicer, the way a family doctor refers a serious case to a surgeon.
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