TRUE FALSE Post2009 securitizations have been labeled CMBS

(TRUE / FALSE) Post-2009 securitizations have been labeled “CMBS 2.0”. Most every one of these 2.0 securitizations (but not all) includes a party not seen in pre-2008 securitizations. This party, given various titles (Senior Trust Advisor, Operating Advisor, etc.), acts to protect the interests of bond holders with regard to the actions of the Special Servicer.

Solution

The answer is “true”.

The Senior Trust Advisor or the Operating Advisor represents the interest of investment-grade investors. The interest of investors is protected from nefarious behavior of special servicers. They also ensure flow of information on a real time basis.