Fitch Updates CMBS Servicer Criteria

Posted by Orb Staff on June 22, 2009 No Comments
Categories : Commercial Mortgage

Ratings has revamped the criteria it uses to rate servicers of commercial mortgage-backed securities (CMBS). The agency updated the criteria to reflect current commercial real estate market conditions and their effect on servicing. The existing criteria were changed in three ways. The first change addresses the servicer's financial rating. Fitch says it increased its financial weightings for both master and special servicer ratings to better reflect its significance. The second change relates to employee experience. Fitch increased its scoring hurdles in management and staff experience to reflect this view. And due to the increased complexity of recent-vintage CMBS servicing, Fitch has increased emphasis on the servicer's participation in the CMBS market over the past few years. These changes have resulted in 16 rating changes across 12 companies. The three upgrades are as follows: [list]CWCapital LLC (primary and master servicer), *CWCapital Asset Management LLC (special servicer), and *The Bank of New York Mellon – Asset Solutions Division (primary and master servicer).[/list] Downgrades were taken on the following companies: [list]Archon Group LP (special servicer), *Centerline Servicing Inc. (special servicer), *CT Investment Management Co. LLC (special servicer), *Hudson Advisors LLC (special servicer), *J.E. Robert Cos. (special servicer), *LNR Partners Inc. (special servicer), *NCB FSB (primary servicer), *Ocwen Loan Servicing LLC (special servicer), *Wachovia Securities (primary servicer), and *Wells Fargo Bank (primary and special servicer).[/list] Additionally, Fitch has affirmed all of the servicer ratings for the following companies: [list]Babson Capital Management LLC, *Bank of America NA, *DB Mortgage Services LLC, *GE Capital Realty Group, *GEMSA Loan Services LP, *Helios AMC LLC, *ING Clarion Capital Loan Services LLC, *KeyBank Real Estate Capital, *Midland Loan Services, *National Cooperative Bank, *ORIX Capital Markets LLC, *Pacific Life Insurance Co., *Protective Life Insurance Co., *Prudential Asset Resources, *Situs Asset Management, and *TriMont Real Estate Advisors Inc.[/list] SOURCE: Fitch

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