easy · Asset-Backed Securities
Under a CMBS pooling and servicing agreement, a defaulted mortgage loan transfers to special servicing.
Which party directly evaluates and executes a workout or note sale, subject to the servicing standard and any document-defined Controlling Class Representative rights that remain in effect?
- The Special Servicer, acting under the PSA's servicing standard and applicable consultation or consent rights.
- The Controlling Class Representative, which directly services the loan and executes every recovery action itself.
- The Master Servicer, which retains direct workout control after the loan transfers into special servicing.
- The Trustee, which selects and carries out the asset-level recovery strategy for each defaulted mortgage loan.
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