CWCapital LLC (CW) has acquired from Citibank the servicing rights for a $2.6 billion portfolio of small, multifamily mortgages. The portfolio contains approximately 2,200 Fannie Mae loans with an average unpaid principal balance of $1.2 million.
The deal grows CW's servicing portfolio to roughly $16 billion. The company will service the loans through its newly created Small Loan Servicing Group, based out of the Needham, Mass., loan servicing headquarters.
Gardner Hall, managing director and head of CW's Primary Loan Servicing Group, will oversee the new portfolio. CW says it is in the process of building out its Small Loan Servicing Group, which will be led by Brian McGrath, vice president.
The firm has also announced it will launch a small-loan origination team during the first quarter of 2012. Located in CW's Irvine, Calif., office, the team will serve the company's new small-loan client base as well as develop third-party business, initially focusing on the West Coast markets, CW says.
