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Special Servicing Fee Calculator

Special servicers charge fees for handling troubled loans. This calculator sizes total fee load.

$
%
%

Total special servicing fees

$98,458

Annual fees accrued

$34,708

One-time workout fee

$63,750

How the math works

Total = (UPB × annual % × years) + (UPB × workout %). Both extract from recovery.

A $10M loan in special for 12 months at typical rates costs $100k+ in fees. If you're close to cure, pay through master servicer fast. Once in special, fees stack.

How to Use

  1. Enter UPB.
  2. Enter annual SS fee %.
  3. Enter months in special.
  4. Enter one-time workout fee %.
  5. Read total fees.

Frequently Asked Questions

Typical rates?

Annual SS fee: 25-50 bps of UPB. Workout fee: 50-100 bps of UPB on successful resolution. Plus expenses (legal, appraisal, brokerage). Fees are substantial.

Who pays?

Ultimately borrower via higher recovery deduction. On CMBS deals, comes out of recoveries. Reduces net return to lenders but incentivizes resolution.

Avoiding?

Cure before transfer to special. Servicers normally transfer at 60+ days past due. Act on first missed payment to stay with master servicer (much lower fees).

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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