• Model Representations and Warranties and Dispute Resolution in CMBS 2.0; Rule 17g-7
  • September 27, 2011 | Authors: Charles T. Marshall; Peter K. McKee; Patrick C. Sargent
  • Law Firm: Andrews Kurth LLP - Dallas Office
  • Mortgage loan sellers/originators make representations and warranties regarding loan terms, borrower structure and collateral in the mortgage loan purchase agreements (MLPAs) entered into between the mortgage loan sellers and the entity creating the CMBS securitization (typically a special purpose entity subsidiary of the sponsor, called the "Depositor"). The Depositor assigns the mortgage loans and its rights under the MLPAs to the securitization trust, including rights against the seller for a breach of the related mortgage loan representations and warranties. The servicer for the trust is charged with assessing whether to pursue a claim against the seller for a breach in accord with its servicing standard.