Source: Fitch / #Apartments #Multifamily
NEW YORK, NY - Fitch Ratings has affirmed the commercial mortgage servicer ratings of Freddie Mac's Multifamily Division as follows: Commercial mortgage master servicer rating at CMS2 and Commercial mortgage special servicer rating at CSS2.
The master servicer rating reflects Fitch's assessment Freddie Mac's ability to perform core servicing competencies including primary servicer oversight, surveillance, loan accounting, investor reporting, and advancing. Freddie Mac appointed itself master servicer for the FREMF 2013-KX01 transaction in July 2014, representing its first traditional CMBS master servicer assignment. The public transaction comprised of 20 single asset multifamily loans, which were removed from other potential K-series transactions, totals $393.4 million and has a traditional special servicer and Freddie Mac seller/servicers as primary servicers. In addition, Freddie Mac performs the core master servicing competencies, in one form or another, for its $52.6 billion whole loan portfolio, a multifamily investment securities portfolio of $27.5 billion, as well as its multifamily guarantee portfolio of $80.9 billion as of June 2014.
The special servicer rating reflects Freddie Mac workout expertise of multifamily commercial mortgage loans, experienced and tenured team of asset managers, proactive surveillance, asset management technology, and well developed internal controls around dispositions. The company appointed itself as special servicer for FREMF 2012-KP01 in June 2013 representing its first assignment as a traditional CMBS special servicer. The special servicing group is responsible for working out defaulted loans from Freddie Mac's various multifamily products and is designated special servicer for 6,597 loans totaling $66.9 billion as of June 2014. For the 12 months ending June 2014 the special servicing group resolved 149 defaulted loans underlying Freddie Mac's financial guarantees totaling $1.7 billion with an average resolution time of 165 days. Resolutions consisted of full payoffs (72%), extensions (3%), modifications (5%), note sales (3%), foreclosure and REO sales (1%), by count.
Both ratings consider the company's strong management team, efficient use of technology, financial strength, knowledge of the multifamily lending environment combined with the support of its seller/servicer network.