CREFC Investor Reporting Package Version 7.0 Released July 1, 2013 Effective October 1, 2013

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1 CREFC Investor Reporting Package Version 7.0 Released July 1, 2013 Effective October 1, 2013

2 Who We Are We are the trade association for the commercial real estate finance industry globally. CREFC Operates in the U.S., Europe and Japan. Our member companies include the industry s leading lenders, investors and servicers. CREFC s membership includes more than 300 companies and 6000 individuals from throughout the $3.1 trillion commercial real estate finance industry. Members include commercial banks, insurance companies, private equity funds, mortgage REITs, investment grade and B-piece buyers, servicers and rating agencies.

3 The CREFC Mission The promotion of commercial real estate finance market efficiency, transparency and liquidity worldwide through the fostering of market excellence and development of best practices. CREFC fulfills its mission by: playing a vital role in setting industry standards and best practices; providing information and education for market participants; and being a legislative and regulatory advocate for the industry.

4 What is the CREFC Investor Reporting Package (IRP)? The CRE Finance Council Investor Reporting Package (CREFC IRP) is a transparent, standardized set of bond, loan and property level information provided for all CMBS securitizations It was initially rolled out in 1997 (Version 1.0 contained 100 of the most important bond/loan property level fields), and the latest Version, 7.0, was adopted on July 1, 2013 with an implementation date of October 1, 2013 The CRE Finance Council IRP was developed for many reasons; chief among them was that various loan servicers were not providing the same information to the trustees on CMBS deals Also, the trustee's statement to certificateholders (monthly remittance reports) were oftentimes in inconsistent formats (they now map to the IRP) Finally, investors were not privy to the same level of information from deal to deal, a problem remedied by the standard reporting format that the CRE Finance Council IRP provides The information in the CRE Finance Council IRP is contained in two different formats: electronic data files and reports (supplementals, reports for operating statement analysis, and templates) The CRE Finance Council IRP is usually available at the Trustee and/or Master Servicer websites

5 What is the IRP Committee? Ongoing task force to address industry questions and concerns Each year the committee takes comments and reviews them for additions, revisions, and/or clarifications to the IRP Who are the IRP Committee Leaders? Ty Wilkins, Wells Fargo Lindsey Wright, C-III

6 Why Did CREFC Developed the IRP? Depositors were not consistent with the loan information provided in prospectus or mortgage schedules at the time of securitization There was no standard reporting at securitization or ongoing throughout life of the deal Standard reports allow investors to compare the initial and on-going performance of CMBS based on the same factors Standard data files facilitate smooth transfer of information between the different parties involved in the CMBS transaction Servicers did not provide the same information to the Trustees Trustee s monthly remittance reports to bondholders continue to be inconsistent formats, however fields now map to IRP Investors were not privy to the same level of information from deal to deal

7 Evolution of the IRP

8 Availability and Content of the IRP The CREFC IRP is usually available at the Trustee and/or Master Servicer websites The IRP contains reports deal, loan, & property level information IRP consists of: Data Dictionary Data Files Supplemental Reports Property Operating Statements Disclosure Templates Best Practices

9 CREFC Data Dictionary Alphabetical listing of all fields contained in the Investor Reporing Package, their definitions, and location within in the IRP All fields within the Data Dictionary have been updated as of Version 7.0 Example: Data File/ Field Number Reports Templates IRP Version Last Updated Field Name 7.0 Definition B Accrual Days The number of days in the interest accrual period for a class of bonds.

10 1. Loan Setup File 2. Loan Periodic Update File 3. Property File 4. Financial File 5. Special Servicer Loan File 6. Bond Level File 7. Collateral Summary File CREFC IRP Data Files

11 CREFC IRP Data Files Loan Setup File Available from the Master Servicer and updated as necessary Information is prepared by the underwriter (Depositor) at time of securitization and sent to the Master or Primary Servicer Most information is static data which is available as of the securitization date Found on websites of Trustee and Master Servicer

12 CREFC IRP Data Files Loan Periodic Update File Prepared by the Master Servicer and sent to the Trustee Updated monthly Reports current accounting information for each loan such as principal balances, payment amount, interest rate, unscheduled items, loan status, etc. Found on websites of Trustee and Master Servicer

13 CREFC IRP Data Files Property File Prepared by the Master Servicer and sent to the Trustee Updated monthly Initial at contribution information is provided by the underwriter (Depositor) and is updated by the Master Servicer Defeased properties will not have property information, property type equals Securities Found on websites of Trustee and Master Servicer

14 CREFC IRP Data Files Financial File Prepared by the Master Servicer and sent to the Trustee Updated monthly Contains line-by-line revenue and expense detail for multiple property types Allows comparison between properties within a single transaction or across multiple transactions, as well as across different accounting periods. Found on websites of Trustee and Master Servicer

15 Special Servicer Loan File CREFC IRP Data Files Prepared by the Special Servicer and sent to the Master Servicer Updated monthly Reports current Specially Serviced Mortgage Loans or Corrected Mortgage Loans in which the Special Servicer is due a Workout Fee Standardizes communication of critical data from the Special Servicer that is combined with data from the Master Servicer to create CMSA data files and supplemental reports. When a loan is liquidated it stays on the file for one month and then drops off. It is not distributed beyond the Master Servicer because all information is contained within other files of the IRP

16 CREFC IRP Data Files Bond Level File Prepared by the Trustee Updated monthly Contains information on the bonds included in the Statement to Certificateholders, including bond balances, principal distribution and interest distribution Bond ratings included if provided by rating agency Found on website of Trustee

17 CREFC IRP Data Files Collateral Summary File Prepared by the Trustee Updated monthly Summarizes information found in the monthly Statement to Certificateholders such as loan count and dollar balance of delinquencies, bankruptcies, foreclosures, REO loans, loans prepaid in full, etc. Found on website of Trustee

18 CREFC IRP Supplemental Reports Overview The Supplemental Reports are prepared by the Master Servicer Updated monthly Effective Version 7.0 (July 1, 2013), there are eight (8) reports Supplemental Reports are found on websites of Trustee and Master Servicer

19 CREFC IRP Supplemental Reports 1. Servicer Watchlist and Portfolio Review Guidelines 2. Delinquent Loan Status Report 3. REO Status Report 4. Comparative Financial Status Report 5. Historical Loan Modification/Forbearance and Corrected Mortgage Loan Report 6. Loan Level Reserve/LOC Report 7. Total Loan Report 8. Advance Recovery Report

20 CREFC IRP Supplemental Reports Servicer Watchlist and Portfolio Review Guidelines Prepared by the Master Servicer Updated monthly Lists loans that fail established thresholds that should be reviewed further to determine if they could become potential problem loan(s) Once a loan is specially serviced it drops off the Watchlist Universe of loans determined by CMSA Portfolio Review Guidelines (PRG). The PRG set thresholds for determining when a loan will be monitored on the Watchlist and when it will be removed

21 CREFC IRP Supplemental Reports Delinquent Loan Status Report (DLSR) Prepared by the Master Servicer Updated monthly Categorizes all loans that are delinquent: 30-59, 60-89, 90+, matured performing, matured non-performing Contains information to monitor loan workouts such as DSCR, Occupancy, Appraised Value, Workout Strategy, Advances, Estimated Losses and comments

22 CREFC IRP Supplemental Reports REO Status Report Prepared by the Master Servicer based on information provided by the Special Servicer Updated monthly This is a property level report that shows all REO Properties Contains information to monitor the rehabilitation, marketing and sale of the property such as REO Date, Occupancy, Appraised Value, Advances and comments

23 Comparative Financial Status Report Prepared by the Master Servicer Update Monthly CREFC IRP Supplemental Reports Compares each property s DSCR, NOI or NCF, and revenues for FYE and YTD with those values at underwriting

24 CREFC IRP Supplemental Reports Historical Loan Modification/Forbearance and Corrected Mortgage Loan Report Prepared by the Master Servicer Updated monthly Provides information on loans that have been modified Identifies loans that have been corrected and returned to the Master Servicer for servicing. The Special Servicer will usually be entitled to receive a liquidation/recovery fee and a workout fee depending on the terms of the underlying Servicing Agreement Provides the estimated loss due to the modification. It is a historical report therefore modified and corrected mortgage loans will remain on the report

25 Loan Level Reserve/LOC Report Prepared by the Master Servicer Updated monthly CREFC IRP Supplemental Reports Reports at securitization reserve balances and current period reserve balances and disbursements, by account type Reports Letter of Credit (LOC) available balance and current period draws

26 CREFC IRP Supplemental Reports Total Loan Report Prepared by the Primary Servicer Updated monthly Reports information on loans split between trusts (pari passu) Master Servicer(s) is (are) the recipient of the report Master Servicer(s) will aggregate the information and deliver the report to all applicable Trustees The report is not necessary if a single Primary Servicer does not exist for the Total Loan

27 Advance Recovery Report CREFC IRP Supplemental Reports Prepared by the Master Servicer (when applicable) Reports the reimbursement of Workout Delayed Reimbursement Amount ( WODRA ) & other non-recoverable advances on a loan basis Sent to the Trustee After all recoveries are received on a loan, the loan is removed from this report or no report is produced if there are no outstanding WODRAs or other non-recoverable advances

28 CREFC Operating Statement Analysis Report (OSAR) and NOI Adjustment Worksheet (NOIWS) Prepared by the Master Servicer OSAR is updated quarterly and NOI Adjustments are usually updated annually OSAR is a detailed property level comparison of borrower s current financial status to 3 preceding periods and underwriting data NOI Adjustment Worksheet details NOI and explains adjustments made for normalization

29 CREFC Disclosure Template 1. Appraisal Reduction 2. Servicer Realized Loss 3. Reconciliation of Funds 4. Historical Bond/Collateral Loss Reconciliation 5. Historical Liquidation Loss 6. Interest Shortfall Reconciliation 7. Servicer Remittance to Certificate Administrator 8. Significant Insurance Event Report 9. Loan Modification Report 10. Loan Liquidation Report 11. REO Liquidation Report Template Reports 13. Payment Posting Instructions 14. Modification Posting Instructions Template 15. Assumption Modification Posting Instructions Template 16. Capitalized Amounts/Non-Recoverable Trust Expense Template

30 CREFC Disclosure Template Appraisal Reduction This template provides the calculation used in determining the Appraisal Reduction Amount ( ARA ) ARA template is used to determine if there is enough value in the property to payoff the Trust investment in the loan ARA is used to determine the ASER (amount by which the Servicer advance is reduced) The ARA calculation is the difference between the Trust payoff and a percentage of the value of the property per the terms of the servicing agreement Updated per the terms of the servicing agreement, usually once a year

31 CREFC Disclosure Template Servicer Realized Loss This template breaks down the application of proceeds for a loan in which a realized loss has occurred Prepared when applicable by inputs from both the Master and Special Servicers Depending on the documents, not all fields in the template are applicable when calculating a realized loss The realized loss to the trust on this template should equal the loss applied to the certificateholders on the remittance report

32 Reconciliation of Funds CREFC Disclosure Template This template provides a reconciliation of bondholder distributions for the month and may be used to identify components of interest shortfalls Updated monthly, prepared by the Trustee Based on loan level information provided by the Master Servicer and allocation of Bond Distribution, as determined by the Trustee Reconciles aggregate funds remitted to the bondholders

33 CREFC Disclosure Template Historical Bond/Collateral Loss Reconciliation This template is prepared by the Trustee It reconciles the loss reported by the Master Servicer to the current realized loss applied to the certificates Realized loss recoveries (as applied toward principal or interest) will also be found on this template Updated monthly

34 Historical Liquidation Loss CREFC Disclosure Template This template is prepared by the Trustee Updated monthly Provides information on all loans that have been liquidated with a realized loss Lists the aggregate amount of liquidation proceeds and expenses and the amount of realized losses for current and prior periods It is a historical report, therefore liquidated mortgage loans will remain on the report

35 CREFC Disclosure Template Interest Shortfall Reconciliation Prepared by the Trustee Updated monthly Reconciles all interest shortfalls from the individual loans that are passed through to the bonds

36 CREFC Disclosure Template Servicer Remittance to Certificate Administrator Prepared by the Master Servicer and delivered to the Certificate Administrator Updated monthly Provides summary level servicer remittance information The summary level information is provided at the pool level and the group level (if applicable)

37 Significant Insurance Event Report MBA form incorporated CREFC Disclosure Template Prepared by the Master Servicer (as applicable) Updated upon request following a FEMA declared event Provides standardized reporting of insurance information in connection with possible property damage resulting from a significant natural disaster

38 Loan Modification Report CREFC Disclosure Template This narrative report was added to the IRP to provide a means by which complex loan modifications and the related financial/monetary term changes can be described and reported to required parties Prepared by the Special Servicer The user of the HLMFCLR will be informed of the availability of the Loan Modification Report by referring to the comment field on the Historical Loan Modification/Forbearance and Corrected Loan Report

39 Loan Liquidation Report REO Liquidation Report CREFC Disclosure Template The two templates have been added to the IRP to provide a means by which the Special Servicer, at its discretion, can provide detailed information regarding the circumstances related to Loan or REO resolutions (liquidations). To allow for Special Servicer Comments after an asset liquidates Included in monthly reporting

40 1099 Template Reports CREFC Disclosure Template 1099 Report Templates were developed in order to standardize reporting between the Special Servicer and Master Servicer for the completion of Form 1099 A (Acquisition or Abandonment of Secured Property) and Form 1099 C (Cancellation of Debt). Templates reflect the following: column headers corresponding to Form 1099 A and Form 1099 C data points, field completion responsibility, discussion points and completed sample file. Given the fluid nature of the IRS requirements surrounding the completion of Form 1099 A and Form 1099 C, updates will be implemented as necessary.

41 CREFC Disclosure Template Posting Instruction Template Workbook Payment Posting Instructions Modification Posting Instructions Template Assumption Modification Posting Instructions Template Capitalized Amounts/Non-Recoverable Trust Expense Template The Posting Instruction Template Workbook contains four posting instruction templates that will be delivered electronically (in excel format) by Special Servicers to Servicers (e.g. Master or Primary Servicers as applicable). Each template provides standard line items reflecting a detailed allocation of funds to be posted to the Servicer loan system at a loan level.

42 CREFC Best Practices CREFC IRP Version 7.0 currently contains Best Practices: Property Inspection Best Practices File Naming Best Practices 1099 Best Practices Loan Modification/Forbearance Best Practices If you are interested in getting involved in the IRP Committee and of its Working Groups, please Alex Levin at or call (202)

43 CREFC IRP For questions or concerns, please contact: Alex Levin, Manager, Industry Standards & Strategic Relations Phone: (202) This Tutorial was last updated on July 1, 2013 to reflect Version 7.0 of the CREFC IRP. To access the CREFC IRP Version 7.0, please visit