At Wells Fargo, we recently reviewed our CMBS loan documents in order to make enhancements that would improve our CMBS borrowers' experience. We examined ways to make the entire process easier and more transparent for customers, in regards to fees, deadlines and expectations. The following enhancements were identified and are being incorporated immediately into our CMBS loan documents.

Reserves

On new Wells Fargo CMBS loans, for reserve disbursements that are $500,000 or less per request, our loan documents will provide that our borrowers will only be required to submit a "Disbursement Request and Certification" and a "Reserve Disbursement Schedule." The Disbursement Request and Certification form will be an exhibit to the loan documentation. This means CMBS borrowers will not need to send in a copy of invoices, checks, etc. as that information will now be listed in the Reserve Disbursement Schedule. For reserve disbursements that aggregate above $500,000 per request, the CMBS borrower on a new loan will need to submit the Disbursement Request and Certification, Reserve Disbursement Schedule, and additional information for any individual invoice that is over $100,000.

Fees

Currently CMBS borrowers are charged certain recurring fees for the life of the loan. On new Wells Fargo CMBS loans, however, borrowers will not be charged these fees. Specifically, Wells Fargo’s loan documents will prohibit the imposition of any fees for the following borrower requests and/or processes:

•    Lease approvals

•    Subordination, non-disturbance and attornment agreements

•    Property management agreements

•    Hotel franchise agreements

•    Reserve disbursements

•    Release of any letter of credit

•    Escrow analysis

•    Copies of loan histories

•    "Pay by phone" payments

•    Tax service

•    Continuation of UCC financing statements

Wells Fargo’s goal is to enhance the CMBS experience for our borrowers. Please contact us if you have any questions or comments.