The servicing criterion in Item 1122(d)(3)(i) requires an assessment of whether “[r]eports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements.” Application of this criterion, as with any Item 1122(d) criterion, depends on the role of the particular servicer. This criterion relates to the servicing activity of compiling and aggregating the information and timely filing or providing reports, which may or may not include preparing the underlying calculations depending on the role of the servicer. For example, if Servicer A calculates the waterfall and Servicer B compiles and files the Forms 10-D with the Commission but does not calculate the waterfall, Item 1122(d)(3)(i) requires only an assessment by Servicer B with respect to the waterfall of whether the information about the amount of distributions provided to Servicer B from Servicer A was appropriately included and timely filed on Form 10-D. It does not require that Servicer B assess whether Servicer A correctly calculated the information it gave to Servicer B. Other criteria within Item 1122(d) will govern the assessment from the appropriate servicer of the information contained in the reports. For example, Servicer A will assess the calculation of the waterfall under the next subsection of Item 1122(d)(3), Item 1122(d)(3)(ii), in its own report on assessment of compliance with servicing criteria. If, however, one servicer prepares all of the disclosure contained in the Form 10-D rather than compiling it from other sources, Item 1122(d)(3)(i) would require that servicer to assess whether the disclosure was calculated in accordance with the terms of the transaction agreements and prepared and filed in accordance with the time frames specified in the transaction agreements and Commission rules. [08/08/06] (Reg AB Telephone Interpretation 11.02)

The servicing criterion in Item 1122(d)(4)(i) requires an assessment of whether the mortgage and related documents, rather than the physical properties underlying the mortgages, are maintained as required by the transaction agreements or related pool asset documents. Moreover, an auditor attesting to an assertion regarding the Item 1122(d)(4)(i) criterion is only required to verify that the mechanics of performing the loan perfection or loan defeasance prescribed in the transaction agreements or related pool asset documents have been performed. The auditor is not required for this or any other criterion to make a legal determination, such as whether the loan perfection and loan defeasance were successfully performed. [08/08/06] (Reg AB Telephone Interpretation 11.04)