Credit and Asset Management Services - Newmark

Credit and Asset Management Services

The Capital Markets Special Asset Management team specializes in risk and collateral management, loan servicing, construction loan administration, and special servicing.

Overview

Our portfolio encompasses a wide range of services including permanent loans, construction and forward products, mezzanine financing, and negotiated or multi-asset transaction loans, all secured by various property types such as multifamily, healthcare, lodging, mobile home parks, office, retail, self-storage, industrial, and mixed-use properties.

We leverage top-notch technology to manage and monitor infrastructure, efficiently addressing the needs of borrowers and capital providers.

We Are A Highly Rated Primary and Special Servicer

  • Fitch Primary servicing CPS2

  • Fitch Special Servicing CSS3+

  • S&P Primary Servicing Above Average

  • S&P Special Servicing Average

  • KBRA Rated for Primary servicing

  • KBRA Rated for Special Servicing

Client Resources

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$168.8 Billion
Loan Servicing Portfolio
5,763
Loans
48
States

Our Services

The Credit and Asset Management Services Team is comprised of four pillars of service. Read on to learn more about each team.

  • Loan Servicing

  • Credit and Risk Management

  • Asset Management

  • Special Solutions Group

Loan Servicing

Newmark has been a premier primary servicer for more than thirty-five years, attaining numerous awards and recognition for exceptional performance and service. Our team has the expertise in Life Company, Agency, CMBS, Bridge and Bank loans. The servicing team has vast experience with all property types including multifamily, healthcare, lodging, mobile home parks, retail, self-storage, industrial and mixed use. Through functionalization, the servicing team assures specialized knowledge and service for each of these areas. The team has a deep bench strength of talent and experience to exceed our client’s expectations and a wide breadth of technology solutions available to service for our clients.

Loan Servicing Programs:

Loan Boarding

New loan set up, covenant set up and monitoring.

Escrow Administration

Escrow analysis and monitoring for taxes and insurance.

Real Estate Tax Administration

Escrow and non-escrow tax monitoring. Payment of taxes for escrowed loans.

Insurance Compliance

Annual insurance renewal follow up, compliance reviews, waiver write up and submission, if applicable, and insurance premium payments for escrowed loans.

Portfolio Management

Point of contact for all borrower requests, investor liaison, assure investor compliance, loan covenant monitoring, coordination with all internal servicing and asset management teams for borrower-initiated requests.

Investor Reporting

Reporting and remittances to investors as required per the servicing agreements.

Payment Processing

Processing of all incoming funds as well as coordination of all outgoing funds to vendors, borrowers, insurance agencies, taxing authorities, etc.

Bank Reconciliations

Monthly and mid-month, if applicable reconciliation of all bank accounts for all portfolios.

Cash Management/Waterfall Administration

Set up, monitoring and processing of all cash management accounts and waterfalls.

Credit and Risk Management

We provide commercial real estate due diligence services that support the complete CRE transaction process − deal screening, underwriting, asset management and servicing, capital markets and securitization. Our team has extensive experience underwriting, acquiring and working out North American, UK, Irish and Continental European NPL transactions.

Credit and Risk Management Services:

UNDERWRITING (CMBS, Agency/GSE, Bridge, Mezzanine, Construction, LIHTC, Equity, Warehouse, Syndication Loans)
  • Agreed Upon Procedures (AUP) – detailed CPA financial testing and account reconciliations
  • Loan Sizing, Rent Roll/Lease Audits, Detailed CAM/RET Recovery Calculators
  • Credit Committee Presentations, Investor Memos or Asset Summaries
  • Transaction and Data Room Management
  • Cash Flow Modeling (ARGUS, Excel)
  • Transaction/Pricing Analysis
  • Site Inspections and collection of market performance data for competitive benchmarking
CAPITAL MARKETS AND SECURITIZATION
  • CLO Packaging and Securitization Support (CRE CLOs, Conduit and SASB, Agency, and Small Balance)
  • Re-underwriting and ASRs
  • Prelim and Accounting Tape Creation
  • Collateral Term Sheets
  • REG ABII Reviews
  • Performing/Non-Performing Loan Analysis and Pricing
  • B-Piece/Risk Retention Investment Analysis

Asset Management

The Asset Management (AM) team manages the ongoing performance of a property post-closing. The AM Team provides surveillance of the assets, including watchlist management, financial analysis, inspections, reserve reimbursement, triggers, borrower consents, satisfactions, and loan payoffs.

Asset Management Services:

Loan Surveillance/Watchlist

Monitor and report increased credit risk per investor and internal risk rating guidelines. Provide Broker Opinion of Values for assets that have been reported on the watchlist.

Financial Statement Analysis

Collect, analyze, and report property level operating statements, rent rolls and budgets per investor guidelines.

Property Inspections

Perform physical property inspections in accordance with investor requirements. In addition, the team follows up on all deferred maintenance and life safety issues.

Covenant/Trigger Analysis

Review loan covenants and complete analysis in accordance with investor requirements, including but not limited to, debt yield tests, net operating income tests, net worth thresholds.

Borrower Consents

Review and analyze borrower consent requests for easements, property releases, ownership transfers, defeasance, etc.

Reserve Management

Review and analyze borrower reserves request for reimbursement, including but not limited to, green repair reserves, replacement reserves, completion repairs.

Payoffs

Calculate all payoff requests in accordance with investor guidelines, including calculation of principal, interest, prepayment premium/yield maintenance, along with any additional fees as required.

Satisfactions

The AM team will take all necessary steps to satisfy a mortgage loan after payoff, including recording a release of lien in the real property records, in a timely manner and in accordance with state/county regulations.

Letters of Credit

Track all letters of credit on loans, as required by the investors.

Special Solutions Group

The Special Solutions Group (SSG) provides customized solutions to the financial services industry, featuring a team of seasoned real estate professionals with experience at every level of the cap stack from senior debt to GP equity across all property types.

Engagements range from “A la carte” offerings to “Full Service” where all facets of the day-to-day Asset Management functions are performed by the SSG team. With SSG, you get the personnel with experience that aligns with your needs and the leverage of a deep bench during peak workflow periods.

We are committed to customized solutions, representing Client’s investments with the same thought and care as if they were our own.

Special Solutions Services:

Special Situations Debt Asset Management
  • Fully outsourced asset management via dedicated personnel (debt and equity)
  • Quarterly asset reviews and portfolio reporting (debt and equity)
  • Comprehensive deal reviews and re-underwriting (debt and equity)
  • Financial and debt covenant compliance
  • Ground-up construction and bridge draw administration
  • Property and market inspection
  • Warehouse and repo line management
Equity Asset Management
  • Asset surveillance
  • Lease review and negotiation
  • Capital project oversight and management
  • Lender management
  • Business plan and performance monitoring
  • Asset disposition
Special Asset Management (Balance Sheet, CMBS and CLO)
  • Asset and portfolio level business plan development, implementation, and surveillance
  • Analysis and recommendation of modifications to existing loan documents
  • Development and implementation of resolution strategies and
  • Workout services from implementation of receivership through foreclosure
  • Operation of REO properties and execution of disposition strategies
  • Full slate of Special Servicing Offerings for CMBS and CLO issuance

ARGUS Audit and Update

  • Reconciled the Rent Roll / Argus Rent Roll / Lease Abstracts for a 16-property portfolio acquisition with over 300 tenants.
  • Performed a comprehensive Review of the Recoveries which will include a full review of the Seller’s source documents and billings to tenants. Includes pro rata shares, Base Years and Amounts, Caps, Gross-Ups and exclusions against the Lease Abstracts. Review the Argus model to be certain the future recoveries and pools are working properly.
  • Identified Termination and Contraction Options and below market Renewal Options.
  • Document/quantify the results of any discrepancies in supporting Excel Audit Schedule.

Asset Management, Loan Servicing, and Treasury Services

  • Full-service asset management, asset reporting and servicing for a wide range of lending platforms and property types.
  • Expertise in streamlining, execution, and providing customized solutions where required.
  • Demonstrated success managing a portfolio of over $168.8B utilizing a variety of technology solutions to enhance customer experience.
  • Equity asset management services for a client portfolio made up of predominantly multi-tenant office/retail assets including: property management oversight, generating CAM recs and lease abstracts, and leasing oversight.

Balance Sheet Underwriting

  • Underwrote a $225 million condo-inventory loan – 167-unit luxury residential building in Manhattan. The loan was collateralized by 71 unsold residential units and 20,000 square fee of commercial space with parking and storage.
  • Managed receipt and tracking or due diligence items and the corresponding checklist.
  • Completed a detailed credit committee memo highlighting underwriting and due diligence findings supported by unit pricing sensitives, select sellout and breakeven analyses, market research, etc.
  • Abstracted purchase contracts and tracked sales activity to determine pricing trends and final collateral at closing.