In one sentence
A servicer's roster of performing loans showing early warning signs, monitored more closely before any actual default.
The longer version
Loans land on the watch list for triggers like declining DSCR, major tenant departures, or late reporting. The point is to catch trouble while options remain, not after default forecloses them.
Watch-list management is reporting-driven: it depends on current borrower financials and covenant tests, which depend in turn on a servicing file that stays live rather than scattering after closing.
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