Lument has one of the top and most responsive loan servicing and asset management platforms in commercial real estate. We put together The Servicing Edge to serve our clients as a comprehensive resource with the latest insights, tips, and information related to loan onboarding, cash management, escrow administration, investor reporting, and special servicing.

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Please contact your assigned asset manager.

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TAXES

Property taxes can be escrowed or non-escrowed. Ensuring taxes are paid on time and with proper evidence secures the property and eliminates potential risk for tax penalties or sale.

TAX FAQS

When your loan is escrowed with Lument, you can view any disbursement made from your tax escrow through LeapOnline Servicing. You can also view your monthly mortgage statement.

If your loan is not escrowed, provide proof of payment on or before the tax due date. Once received, the account will reflect the tax payment.

Should you receive a property tax bill, please immediately forward it to TaxAdmin@Lument.com for processing. Include loan number, tax year, and property name for reference along with providing any adjusted or corrected property tax bills. Original tax bills should be mailed to our office:

LUMENT
Tax Department
700 N. Pearl St. Suite N1500
Dallas TX 75201

For the state of Pennsylvania, original bills may need to be sent back with the tax payment. In this case, a duplicate bill fee may be assessed by Lument.

Once the taxing authority reduces the tax amount, Lument will complete new escrow analysis to ensure appropriate collection based on the updated amounts.

An updated escrow analysis will be provided to you in the event of any changes. This analysis is also made available in LeapOnline Servicing.

For changes in insurance (e.g., coverage, agent, insurance company), or any questions relating to insurance, please email ClientServices@Lument.com.

For questions relating to tax, please email TaxAdmin@lument.com.

INSURANCE

Proper insurance isn’t just a requirement — it’s essential to protect your property. Lenders mandate specific coverage to safeguard the property, ensuring your investment and the loan are insulated against unexpected risks. Insurance is a vital part of securing a loan and is required and monitored regardless — even if escrowed by a different lender than closed the loan.

INSURANCE FAQS

You can access the specific insurance requirements for Fannie Mae, Freddie Mac, and HUD/FHA loans via the links below.

The commercial insurance market has become more complex and costly. While bodily injury has always been a part of liability insurance, recently, insurers have started adding exclusions for specific cases, leading agencies to possibly require separate, more expensive policies that can be hard to get in some areas. Many states are also passing laws to limit payouts related to these claims.

To ensure your coverage meets the necessary requirements, we encourage the following:

Consider quoting coverage through an agent with a broader market reach, including excess and surplus or international markets
Provide relevant mitigants for potential claims on these risks (e.g., security measures, employee background checks, pet restrictions, security cameras, etc.) at your property
Engage your insurance agent sooner in the renewal process to discuss requirements and explain the importance of finding the exact liability coverage needed
Request that your agent obtain standalone policies to supplement any exclusions provided by your policy, if possible.

For questions, please contact your assigned asset manager or email ClientServices@Lument.com.

If compliant coverage cannot be obtained, the lender may place coverage for the collateral at the borrower’s expense.

Lender placed coverage (also referred to as force place insurance) is placed by the lender to cover its interest in the property, which is collateral for the loan. This type of coverage is typically more expensive and only covers the collateral protecting the lender’s interest. To avoid lender placement, borrowers must maintain their own compliant coverage.

If placed, the additional expense will be added to the borrowers billing statement, reflecting the increased payment for the month immediately following placement, and it will continue until compliant coverage is provided.

The lender must be advised immediately if there is a loss or damage to the property, even if the damage is not significant enough to file an insurance claim.

Provide the following documents to your asset manager following a hazard loss:

Insurance adjusters report
Statement of loss
Photos of damage if available
Hazard loss questionnaire provided by asset manager

Any insurance loss payments should be jointly payable to the insured and additional insured as noted in the insurance policy, and any loss proceeds will be deposited into a reserve account and disbursed as repairs are made. Verification inspections will be completed throughout the process.

Provide the following documents to your asset manager following disbursement of hazard loss funds:

Hazard loss worksheet provided by reserves team
Copy of contract with any contractor or sub-contractors, include estimates, quotes, pay schedules, or change orders if available
Conditional lien waiver when the vendor has not been paid and unconditional lien waivers when the vendor has been paid (request examples from your asset manager if needed)
Invoices and receipts associated with the loss
Proof of payment(s)
Borrower certificate of restoration — to be completed once repairs are 100% complete (FMAC)

Please contact your asset manager if you have any additional questions.

Reserves

Reserves are funds set aside by lenders to cover future repairs and maintenance, helping ensure your property stays in good condition and maintains its value. Your loan documents outline any initial deposits, required monthly deposits, and any annual fees associated with reserve accounts.

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RESERVES FAQS

Required repairs are mandated by the agencies, like Fannie Mae, Freddie Mac, and HUD/FHA, to ensure the property meets safety, structural, and habitability standards. These repairs help protect both your investment and the lenders collateral. They are typically identified during the loan underwriting and appraisal process.

Replacement reserves are funds set aside to cover the cost of major property components that wear out over time, such as roofs, HVAC systems, and appliances. The reserve is to ensure you have the funds to keep the property in good condition and maintain its long-term value.

To draw funds from the reserve, you will need to submit the appropriate disbursement worksheet, proof of completion of work invoices along with photos or inspection, and proof of payment. For repairs greater than $10,000 a lien waiver is also needed.

Disbursement worksheets:

Replacement reserve
Completion repairs
Insurance loss

Once completed, the forms and all back up documentation can be emailed to the Reserves@Lument.com inbox for processing and disbursement. Alternatively, requests can be made via “My Requests” through LeapOnline Servicing. The typical turn-around time for processing reserve requests is seven to 10 business days from the date a complete draw request is received.

Property Condition

Your property condition is key to protecting your investment and securing your loan. A well-maintained property not only preserves value but ensures you stay in compliance with your lender requirements, avoiding costly repairs and complications down the road.

PROPERTY CONDITION FAQS

For agency loans like Fannie Mae, Freddie Mac, and HUD/FHA, an annual inspection is a yearly evaluation of your property to ensure it remains in good condition and is compliant with loan requirements. The inspection focuses on key areas including deferred maintenance, life safety concerns, and overall property upkeep. It also involves the inspection of occupied and vacant units.

Deferred maintenance is categorized as necessary repairs or upkeep that have been postponed. Identifying deferred maintenance is crucial because unresolved issues can lead to more extensive damage, higher repair costs, and a decline in property value. Lument tracks deferred maintenance to ensure the property remains a sound investment. Addressing these issues promptly helps protect your asset and keeps your loan in compliance.

Life safety refers to the systems and features designed to protect tenants and visitors from harm — fire alarms, sprinklers, structural integrity, and the mitigation of physical hazards. Identifying these issues is essential because they directly impact occupant safety. Addressing such issues quickly helps protect lives and your property.

Routine maintenance includes regular tasks that keep your property in good working order and prevents costly repairs down the line. Common examples include, but are not limited to:

HVAC servicing
Roof inspections
Plumbing checks
Exterior upkeep
Landscaping and drainage maintenance
Pest control

By implementing a schedule of routine maintenance, your property’s systems will last longer, keeps tenants safe, and prevent small issues from turning into major repairs. Maintaining the property’s condition is key to protecting your investment.

Lender Consents

Lender consents are post-closing transactions that involve changes or financial actions on your property that occur after the loan has closed. These transactions will require lender approval to ensure the property remains compliant.

Management company changes
Collateral change, alterations
Commercial leases
Repair extensions
Condemnations
Easements
Partial releases
Assumptions/transfers of interest

Please contact your asset manager to determine if any changes you wish to make will require lender approval. Your assigned asset manager can be found in LeapOnline Servicing. You can also email ClientServices@Lument.com for assistance.

Financial Reporting

Providing financial reports on time helps you monitor cash flow, plan for expenses, and ensure compliance with loan requirements. Staying informed allows you to make proactive financial decisions and maintain lender confidence.

FINANCIAL REPORTING FAQS

Lument will send reminder notices for financial reporting requirements during the calendar year; however, if questions arise, please contact your asset manager or email Client Services at ClientServices@Lument.com.

Fannie Mae:

The corresponding rent roll and a statement of income and expenses is due on a year-to-date basis as of the end of each calendar quarter. The rent roll is due within 45 days after the end of each first, second, and third calendar quarter, along with an annual statement within 120 days after the end of each calendar year.

Note: Fannie Mae Small Balance loans only require annual financial reporting, unless otherwise requested by Lument.

Freddie Mac:

The corresponding rent roll and a statement of income and expenses is due on a year-to-date basis as of the end of each calendar quarter. The rent roll is due within 35 days after the end of each first, second, and third calendar quarter, along with an annual statement within 90 days after the end of each calendar year.

Note: Freddie Mac SBL loans only require annual financial reporting and a mid-year rent roll, unless otherwise requested by Lument.

FHA/USDA/HUD:

The corresponding rent roll and a statement of income and expenses is due on a year-to-date basis as of the end of each calendar quarter. The rent roll is due within 60 days after the end of each first, second, and third calendar quarter and an annual statement within 90 days after the end of each calendar year.

LeapONLINE SERVICING

From checking your balances and viewing monthly billing statements, to uploading financial statements and submitting replacement reserve requests, LeapOnline Servicing can provide you all the information and tools you need to manage your loan.

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We strive to provide you with the tools and resources to manage your loan. With LeapOnline Servicing you will be able to access the following.

See outstanding required documents
Upload documents through the portal
View document status for uploaded items

Submit for release of funds from loan specific reserve accounts
Access real-time status of submitted requests

Create and schedule basic reports, including amortization schedule, payment history, reserve details, and transaction summary

Use existing LeapOnline credentials to log in to LeapOnline Servicing

View new Lument loans automatically added to your profile at closing

If you have any questions or need assistance, please reach out to our Client Services team at ClientServices@Lument.com.

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