Midwest offers both primary servicing and special servicing to its partners:
- Primary servicing entails day-to-day payment processing and reporting on performing assets
- Special servicing encompasses workout and recovery processes on sub-performing and non-performing assets
Midwest uses reasonable and prudent commercial loan (including commercial mortgage loan) and REO servicing practices that are no less favorable to its partners than the servicing, collection, resolution and disposition practices Midwest applies to REO or other assets of the same type.
In most cases, Midwest has broad authority to act on behalf of its partners in conducting servicing activities, particularly when special servicing assets. Midwest’s authority is limited, however, to resolutions resulting in recovery greater than or equal to a fixed percentage of the most recent quarterly budget for an asset. If a proposed resolution falls below the set threshold, Midwest must seek its partner’s approval for such resolution.