Roundup: Imperial Capital Bank Gets First Small Loan Rating
Fitch Ratings has given Imperial Capital Bank the first primary servicer rating specifically designated for management of small loans in commercial mortgage backed securities.
ICB received a "CPS3 Small Loans" rating from Fitch, making the company eligible to serve as a primary servicer of loans packaged into commercial mortgage-backed securities.
ICB is a state-chartered commercial bank headquartered in La Jolla, Calif. Its parent company is ITLA Capital Corp.
As of March 31, ICB's real estate loan servicing portfolio consisted of 1,493 loans totaling $1.4 billion. ICB is not currently a primary servicer on any CMBS loans.
Rich Carlson, an analyst in Fitch's Chicago office, said that small loans seem to be a new area of focus within the commercial mortgage world.
Mr. Carlson said that servicing small balance commercial loans requires some different skill sets from handling large loans with more sophisticated borrowers. Often small loan borrowers require more individual attention from the servicer.
"We've been seeing more small loans going into regular conduit transactions and we've also been seeing residential originators making small balance commercial loans and putting them into their residential securitizations," he told MSN.
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