Mortgage Servicing - Frequently Asked Questions (FAQ)

1. I have decided to sell my property. What are my options?

You typically have two options: use the proceeds to pay off the existing mortgage or, the buyer of your property can apply to assume your existing mortgage. Please call us at 1.877.593.5474 to speak with a mortgage servicing professional, and we will walk you through your options. If you have a CMBS mortgage, please click here.

2. Can I get an information statement of all transactions on my mortgage?

Your annual statement with a summary of all transactions on your mortgage account is provided free of charge and mailed out to you each year in January. All requests for statements in addition to your annual statement require a written request and are subject to an administration fee.

3. My contact information has changed and/or I would like to designate a new point of contact on my mortgage account. How do I advise First National of these changes?

Please contact us at 1.877.593.5474 and request to speak with a Commercial Mortgage Administrator.

4. Why do I need to provide First National with a written request to make changes, or requests to my mortgage account?

First National requires clients to forward a written request for all requests in order to protect the privacy and confidentiality of their clients. Requests will only be accepted from the designated contacts on the mortgage account.


Conduit (CMBS) FAQ

1. I am looking to sell or refinance my property. What are my options?

All CMBS mortgages are governed by your specific mortgage documents. If your mortgage documents do not allow for prepayment of yield maintenance, your mortgage may need to be defeased. If you have sold your property, the purchaser may wish to assume your mortgage (subject to qualification). Please contact a Portfolio Manager at 1.800.465.0039 to review your mortgage documents and to discuss your options.

2. What is Defeasance?

Defeasance is the process of substituting one type of collateral for another. Borrowers replace their real estate collateral with a portfolio of government-backed securities. This portfolio is structured so that the proceeds generated from the securities is sufficient to cover all of the remaining debt service payments on a Commercial Mortgage Backed Securities (CMBS) loan.

Defeasance gives borrowers the flexibility to sell or refinance their mortgaged property when their loan has been sold into securitizations.

3. Why do you require Financial Statements, Operating Statements and a Rent Roll each year?

As a prudent lender, First National conducts an inspection and financial review of properties in our portfolio. Our annual due diligence process includes a yearly review of Financial Statements, Operating Statements and Rent Rolls for each of our properties.

4. I am planning to obtain additional secondary financing on my property. Do I need your consent to do this?

Yes. As contained in your mortgage documents, requests for secondary financing are subject to approval and dependant on intended use of funds. Generally, approval is limited to improvements to the property. For more information, contact Mortgage Servicing at 1.800.465.0039 and speak with a CMBS Specialist.

5. First National retains a Reserve Account for repairs to my property, how do I obtain a refund of     monies?

To receive a refund on your Reserve Account, First National requires a written request detailing the work that has been completed along with all supporting information, invoices and proof of payment. Upon receipt, one of our Portfolio Managers will review your request. Once all required information has been received and approved, your funds will be released within 3 days.