The volume of commercial mortgage-backed security (CMBS) assets serviced by Fitch-rated special servicers rose dramatically last year, according to the rating agency's 2010 year-end report. Thirty-five rated special servicers were handling 4,586 loans and 957 real estate owned assets totaling $90.7 billion at the end of December – up 22.7% by unpaid principal balance (UPB) and up 25% by asset count from one year earlier.
The 25 primary servicers rated by Fitch administered more than 156,900 CMBS and non-CMBS loans totaling more than $1.51 trillion – down by 1.2% in UPB but up 5.1% in terms of loan count.
Fitch also noted that the highly concentrated master servicing market was dominated by five shops: Wells Fargo, Berkadia Commercial Mortgage, Midland Loan Services, Bank of America Merrill Lynch and KeyBank Real Estate Capital. The agency explained that the top-heavy market is the result of significant barriers to entry, a lack of new CMBS issuance and Wells Fargo's integration of the Wachovia Securities Platform.
SOURCE: Fitch Ratings
