Read your asset the way the servicer's watchlist will

1 · Learn the move · Role-play

After completion your loan is watched by someone who has never walked the site: a servicer's analyst who reads your quarterly package against the covenants and decides whether the asset belongs on a watchlist. You usually find out after the entry is written. The role-play move lets you read it first. Have the model play that analyst - restating each covenant as written, each reported figure as reported, and marking each test met, possibly not met, or not testable from the package - then step out of the role and brief you, the owner, on what that analyst will see and which documents would change the read. Two things it never does in either chair: declare a breach on its own arithmetic, and draft what you say to the lender about a shortfall. A covenant problem is a legal conversation before it is a lender conversation, and that conversation starts with counsel.

Play the servicer's analyst reading my quarterly package against my loan covenants. Restate each covenant as written and each figure as reported, and mark MET, POSSIBLE or NOT TESTABLE. Never write breach and never compute a ratio. Then step out of the role and brief me, the owner: what the analyst will flag, what documents would change the read, and what goes to counsel before anything goes to the lender. [covenant sections] [quarterly package]