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CSFB Looking At GMAC-CM?

Investment banker Credit Suisse First Boston is conducting due diligence on GMAC Commercial Mortgage here, the nation's largest commercial loan servicer, sources told Mortgage Servicing News.

According to one commercial official, "CSFB is on its second or third round of due diligence."

CSFB, GE Capital and Deutsche Bank have been mentioned as finalists for the $160 billion commercial mortgage servicer.

A spokesman for CSFB declined to comment on the matter, as did a public relations official for General Motors, the parent of GMACCM.

Besides these three firms, other lookers have included Dutch conglomerate ING, Lehman Brothers and Metropolitan Life, sources said. Early on, Washington Mutual, Seattle, took a look at the company, but passed.

One commercial lender noted that Lehman, at one point, had contemplated buying GMACCM with the idea of breaking it up into pieces. It's expected that if CSFB wins the bid, it will operate GMACCM as a going concern.

"The risk is such on their residuals (securities) that a regulated type of institution would have trouble with the company," said one mortgage executive. "This thing is a much better fit for an investment banking firm."

GMACCM ranks first in both commercial production and commercial servicing rights, according to this newspaper and its affiliate, the Quarterly Data Report.

How much GMACCM might fetch is unclear. Some executives say the asking price could be as high as $1 billion.

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