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Viewing Loan Origination From a Servicing Perspective: Avoiding Issues for Lenders and Borrowers During a Loan’s Term

Taking a Close Look at Assumptions, Equity Transfers, Guarantor Replacements, Cash Management and Operational Issues

Recording of a 90-minute premium CLE video webinar with Q&A

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Conducted on Thursday, July 11, 2024

Recorded event now available

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This CLE webinar will address provisions that should be considered at the time of origination of a loan to avoid issues for lenders and borrowers during the loan’s term. The panel will focus on how loan terms related to assumptions, equity transfers, guarantor replacements, cash management, and operational issues can create problems for lenders and borrowers alike during the life of the loan.


When originating a loan, it is important to consider how the loan terms will be interpreted and enforced by a servicer (or, in the context of a balance sheet loan serviced in-house, by the originating lender) down the line and to resolve any potential conflicts that may arise between the provisions of the loan documents and the actual nature of the borrower and property.

Getting both parties on the same page is critical to avoiding future issues, particularly with respect to CMBS or other securitized loans. Some common issues that arise in this context are whether an assumption is an open door to renegotiate loan terms, whether equity transfers present “Know Your Customer” and notice compliance concerns, what happens when a guarantor dies, what servicing issues arise when addressing cash management, and what are the operational issues relating to leases, property alterations and financial reporting.

Listen as our authoritative panel of real estate finance and lending experts who advise clients throughout the life cycle of both CMBS and balance sheet loans walk you through key loan origination considerations from a servicer’s perspective.



  1. Overview: life cycle of a loan
  2. Importance of considering loan servicing at the time of origination – how will your loan terms be interpreted over the term of the loan?
    1. CMBS loans
    2. Balance sheet loans
  3. Common issues
    1. Assumptions
    2. Equity transfers
    3. Guarantor replacements
    4. Cash management
    5. Operational issues
  4. Conclusion
    1. Getting both parties on the same page is critical to avoiding issues during the loan term
    2. For CMBS or other securitized loans, it is important to address issues on the front end to avoid problems on the back end


The panel will address these and other key issues:

  • Why should lenders and borrowers consider potential servicing issues when a loan is originated?
  • What contingency plans or terms can be put into place to avoid these issues?
  • What happens if a loan document permits a borrower to do something that a CMBS trust lender cannot allow them to do?
  • How does the approval process work for non-permitted equity transfers and assumptions for a CMBS or CLO transaction compared to a balance sheet loan?
  • What are drafting considerations for change of control and transfer provisions in loan documents?


Litwinovich, James
James P. Litwinovich

Alston & Bird

Mr. Litwinovich represents institutional lenders in sophisticated commercial real estate secured financing across a...  |  Read More

Natt, Joseph
Joseph Natt

Alston & Bird

Mr. Natt is part of Alston & Bird’s Real Estate Group. He focuses his practice on commercial real estate...  |  Read More

Wolf, Seaira
Seaira R. Wolf

Alston & Bird

Ms. Wolf is a partner in Alston & Bird’s Real Estate Group. She focuses her practice on commercial real...  |  Read More

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