Fitch: CMBS Servicers More Effective
Commercial mortgage-backed securities loan servicers are cutting down loan assumption processing times without compromising underwriting quality, according to Fitch Ratings. At the same time, Fitch said there still are opportunities for servicers to improve the way commercial real estate loans are assumed by a new borrower.
Fitch said that CMBS servicers have reduced their processing time when loans change hands by 25% since the 2004-2005 period. The number of loan assumptions has increased on an annual basis to 1,411 in 2007 from 1,245 in 2006. Loan assumptions are complicated by the guaranties, cash management features and performance covenants inherent in commercial mortgages, the rating agency said. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/