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IIA-CFSA · Question #278

A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out "or foreclosure process. There are various scenarios typical for…

The correct answer is C. Those appointed solely because of risk-management expertise. See the full explanation below for the reasoning.

Question

A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out “or foreclosure process. There are various scenarios typical for determining special servicers; as mentioned below, EXCEPT:

Options

  • AThose seller/issuers retaining the first-loss piece
  • BThose investing in "B" pieces in return for special services rights.
  • CThose appointed solely because of risk-management expertise.
  • DNone of these

How the community answered

(65 responses)
  • A
    3% (2)
  • B
    6% (4)
  • C
    78% (51)
  • D
    12% (8)

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