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Commercial mortgage-backed securities (CMBS) are backed by commercial and multifamily mortgages. The originators of those mortgages are not the same people who create the CMBS  financial instruments. There are three types of services in the CMBS: The subservicer is the loan originator in a conduit deal, who sends all payments and property information to the master servicer to sell the loan; The master servicer assists in the timely payment of interest and principal to the investor, and has the responsibility to provide for servicing advances when a loan goes into default; the special servicer is empowered to modify the terms of the loan through loan extension or loan restructuring and to foreclose on the loan. When your loan has problems, you have to default on the loan before you can get any aids. When the loan has to move from master servicing to the special servicer, you will be able to talk about what to do with the deal. There’s significantly less multifamily in these CMBS pools recently. The CMDs world is becoming distressed, for the majority of the loans are on asset classes that are suffering significantly today. 


Ambrose, B. W., Sanders, A. B., & Yavas, A. (2016). Servicers and mortgagebacked securities default:  Theory and evidence. Real Estate Economics, 44(2), 462-489. 

Fabozzi, F. J. (Ed.). (2016). The handbook of mortgage-backed securities. Oxford University Press. 

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