In addition to the administration of the loan portfolio, the ________ is responsible for distributing the proceeds collected from the borrowers to the different bond classes in the structure according to the cash flow waterfall.

Question

Quizplus · Accepted Answer

The servicer is specifically responsible for distributing the proceeds collected from the borrowers to the different bond classes in the structure according to the cash flow waterfall. The trustee may also have involvement in managing the loan portfolio and distributing proceeds, but this is not their primary responsibility. Bond insurers are not responsible for managing or servicing loans.

In Addition to the Administration of the Loan Portfolio, the ________