Waterstone provides commercial mortgage servicing and subservicing for portfolio lenders, institutional investors, financial institutions, and specialty finance companies. Our servicing solutions are extremely flexible, allowing clients to retain as many or as few of the servicing activities as they wish. This allows our clients the option to retain direct borrower customer service, asset management and credit-related activities, while increasing efficiency by outsourcing the highly scalable processing activities.

We guide you through today’s highly complex structures, including:

• Mezzanine debt
• A/B subordination notes
• Participations
• Commercial mortgage-backed securities

Waterstone’s primary loan services include cash processing and cash management, tax and insurance administration, escrow analysis, investor reporting, UCC administration, reserve and draw management, site inspections, asset summary reviews, and portfolio management reporting.

Cash Processing

Involves preparation of monthly billing statements, automated clearing house payment management, daily cash movement and reporting, early stage collections, and management of cash waterfall activities.

Tax & Insurance Administration

We carefully review loan documents to determine insurance and tax payment requirements. If specified in the loan, Waterstone will establish and maintain escrow accounts for the timely payment of mandatory property taxes and insurance premiums.

Investor Reporting

Depending on the investor’s needs, we automatically provide daily, weekly or monthly remittance reports.

UCC Administration

Waterstone facilitates the filing of renewals of Uniform Commercial Code (UCC-1) forms, to ensure that the personal property that was included in a commercial mortgage transaction is maintained as perfected collateral.

Reserve and Draw Administration

Waterstone carefully reviews a loan to determine its requirements for establishing reserve balances for anticipated and unanticipated expenditures at the property level, such as for repairs, remediation, replacement, tenant and capital improvements, construction, and debt service.

We set up separate reserve accounts and follow each loan’s approval guidelines before prompt disbursement of funds to the borrower. We report each account’s activity on a periodic basis to ensure balances are maintained at the levels specified in the loan at all times.

Site Inspections

Waterstone inspects properties throughout the country and evaluates their general physical and economic conditions and relative positions in the local and regional marketplaces.

From a single asset to a portfolio of hundreds of widely dispersed properties we have an extensive staff of experts to conduct thorough inspections and market studies in a timely manner.

Waterstone has extensive property inspection experience with the following property types:

• CMBS Loans
• Agency Loans
• Portfolio Loans

Asset Management

Waterstone reviews lender consents from borrowers, and facilitates surveillance activities including periodic analysis of financial statements, rent rolls, and operating statements. We prepare asset summary reports and provide complete portfolio management reporting to ensure that borrowers remain compliant with the terms of their loans.

We also offer assumption loan processing, working with prospective lenders, borrowers, or servicers to guide assumptions through the approval process.