Although they play a crucial role in increasing recovery rates for CMBS investors during times of acute economic stress, Standard & Poor’s warned that the entrance of new and lesser known special servicing operations can overcrowd the market and complicate the servicing process.

Special servicing operations are the entities that reinstate cash flow from distressed assets in structured finance offerings. However, that key function can be stalled by complications when controlling class investors replace the acting servicer with one that they chose.

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