LOAN DEFEASANCE SERVICES
Robert Thomas CPA, LLC offers loan defeasance verification services for commercial real estate loans. We are one of two CPA firms in the United States to provide this service. The team of professionals at Robert Thomas CPA, LLC has provided loan defeasance verification services for nearly 20-years and on over 10,500 engagements, in each of the 50 states and in Canada. For more details on the specific experience of our team members, please see our teams' Resumes.
With our tenured experience, strong regulatory and technical expertise, client-centered approach and competitive fee structure, we provide an unparalleled level of client service.
With our tenured experience, strong regulatory and technical expertise, client-centered approach and competitive fee structure, we provide an unparalleled level of client service.
Background
Borrowers often choose to prepay or defease an outstanding commercial mortgage-backed security for economic reasons. In a collateral defeasance, the borrower purchases a portfolio of U.S. government securities in an escrow account to fund the remaining debt service payment through the scheduled maturity date, releasing the lien of the real estate property. At the time of the execution of the defeasance a nationally recognized independent certified public accounting firm is required under the legal documents and by rating agencies to provide written verification of the sufficiency of the escrow to the trustee. Robert Thomas CPA, LLC is one of two CPA firms in the Unites States able to provide this service.
Scope of Service
Robert Thomas CPA, LLC will verify the following as part of our loan defeasance report:
- That the revenue stream from the defeasance collateral is sufficient to make the remaining debt service requirements of the defeased loan through the scheduled maturity date
- The computation of the revenue stream from the defeasance collateral is accurate
- Revenue received in any month will be applied within four months after receipt to scheduled debt service payments
- The interest income to the borrower or the successor borrower from the defeasance collateral will not exceed the interest expense associated with the defeased loan in any calendar or fiscal year
- Monthly payment dates to conform to the defeasance collateral provisions, which provide payments prior to or on, but as close as possible to, the business day immediately preceding or succeeding all monthly payment dates
Sample Reports
| rtcpa_sample_loan_defeasance_report.pdf |
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Accounting for every detail.
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