Commercial servicing

Originators collaborate closely with borrowers to develop smart risk solutions based on their goals and dreams. Once it is time to execute on a smart risk solution, Commercial Servicing takes over, ensuring the continuity needed to turn the promised potential into value and results. Committed to building trust and inspiring confidence with borrowers, investors and originators, Commercial Servicing guides every mortgage through its lifecycle with the highest levels of accuracy, accountability and transparency.

Financial requirements

On an annual basis, we review financial documents as outlined in the commitment letter to continuously verify the financial health of the property.

Insurance requirements

On an annual basis, we verify that all insurance requirements outlined in the original loan documents are being met to ensure adequate coverage for the property.

Payments, pre-payments and banking changes

If alterations to verified payment dates or banking information need to be made, we work to verify and implement those changes, so information remains current and execution proceeds smoothly.

Undertaking

Post funding, we work with borrowers to meet the specific milestones and obligations outlined in the mortgage contract.

Property tax

For borrowers that choose to pay their own property taxes, we work in collaboration with the tax department to show proof of timely and accurate payment.

Mortgage information

For both annual accounting and general mortgage management, we provide three key statements including the Annual Statement, Mortgage Information Statement and Amortization Schedule.

Your commitment letter

The commitment is a contract between First National and the Borrower. First National uses this commitment as the source for all decision making throughout the duration of the mortgage amortization period. The commitment covers everything from payment type (fixed, floating, amortizing, interest only), pre-payment parameters, insurance requirements, type of annual review documents to be collected, undertaking requirements, etc.

Why is it important?

It is important to note that the commitment is attached to the mortgage (rather than the borrower) for the entire amortization period.

If the loan is assumed the current Borrower is replaced by the Purchaser of the property.
If the loan is renewed the terms and conditions of the commitment are extended for a new term in accordance with the renewal agreement.
If the loan is refinanced the terms of the existing commitment is discharged and new terms are registered with the mortgage.