Covenant Compliance & Watchlist Monitor☆

Test a closed CRE loan against its covenants and triggers, then add, retain, or remove it from the watchlist.

When to use it

Use this skill between annual reviews, when financials or a rent roll arrive, when a covenant certificate is delivered or missed, when a trigger event is reported, when a maturity moves inside the monitoring window, or when preparing the monthly or quarterly watchlist package for a credit committee or board. Do not use it to grade a loan for regulatory classification on its own: it produces the evidence and the recommendation, and the rating decision belongs to Annual Loan Review and Risk Rating.

What to have ready

• Loan agreement, note, mortgage or deed of trust, guaranty, cash management or lockbox agreement, and every amendment, modification, forbearance, or waiver letter. This…
• The approved credit memo or term sheet showing the original underwritten DSCR, debt yield, LTV, occupancy, and sponsor tests, as produced by Credit Memo Writer
• Delivered financials for the test period: operating statement, trailing twelve month statement, rent roll, borrower and guarantor statements, tax returns, and covenant…
• Payment history, escrow and reserve balances, servicing advances, current tax and insurance status
• Most recent appraisal or evaluation and its date, any property inspection report, current watchlist status, risk rating, waiver history, and prior action plan
• The institution's watchlist and covenant policy, reporting calendar, and exception process

How to use it

1. Download it with the button above. You'll sign in with a work email — that's how the creator knows who is using their skill.
2. Copy the install prompt from the "Run it in Claude" box, and paste it into Claude along with the file. Claude installs the skill, fills in your firm's details where the file has [BRACKETED] placeholders, and runs a quick test with you.
3. Then just ask in plain English. Claude picks the skill up on its own when a request matches it. Anything it still needs, it asks you for — it won't invent a number.

"Use the Covenant Compliance & Watchlist Monitor skill — I've got the loan agreement, note, mortgage or deed of trust, guaranty."

What you get back

A structured report covering covenant tests, reporting, escrows, and payment record, structural triggers, early warning indicators, cure and waiver history, maturity and refinance view, and action plan. You get it as readable analysis plus the underlying data, so it can feed straight into a memo or another skill.

Good to know

• Output quality tracks input quality. A missing figure is flagged as missing — it is never estimated to fill a gap.
• Every draft is a starting point for your own review, not a finished decision.
• Runs anywhere Claude does: the Claude app, Claude Desktop, or Claude Code.

Legal disclaimer

This skill drafts; it does not decide. Its output is not legal, tax, accounting, appraisal, or investment advice, and using it creates no attorney-client, fiduciary, or advisory relationship. Nothing it produces is a commitment to lend or an offer to sell a security. Verify every number, date, citation, and conclusion against the source documents, and have a qualified professional licensed in the relevant jurisdiction review the work before you rely on it or send it to a borrower, investor, counterparty, or regulator. Laws, rates, and market data change. The final work product is yours.