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GMAC Commercial Hits $200 Billion Mark

The latest rankings of commercial mortgage servicers from the Mortgage Bankers Association show the usual suspects at the top. The leading commercial mortgage servicer, by total primary and master servicing volume, as of the end of 2004, is GMAC Commercial Holding, according to data compiled by the trade association.

GMAC, which had a servicing portfolio of $208.14 billion for the period, was also at the top of the list for 2003. Wachovia, with a servicing volume of $184.83 billion is next, followed by Midland Loan Services with $98.36 billion. They were also in the same positions for 2003.

Breaking down the servicer rankings by commercial mortgage-backed securities master and primary servicing volume, the MBA reports that Wachovia is at the top of the list as of Dec. 31, 2004 with a total servicing volume of $117.56 billion. Other than that, there is little change in the rankings, with GMAC next, at $111.49 billion, followed by Midland Loan Services at $72.27 billion.

These rankings are likely to continue to show the same names at the top as long as the top-ranked servicers continue to benefit from the economies of scale that their portfolio size confers. This will continue to give them an advantage over other servicers in attracting new servicing volume, which will mean that the status quo continues.

Also in the list of top 10 commercial mortgage servicers by total master and primary servicing volume are (with servicing volume in parentheses) GEMSA Loan Services ($60.13 billion), Bank of America ($54.29 billion), Wells Fargo Commercial Mortgage Servicing ($51.44 billion), Prudential Asset Resources ($44.39 billion), KeyBank REC ($34.09 billion), Washington Mutual ($33.74 billion) and ORIX Capital Markets ($28.99 billion).

The MBA considers a primary servicer to be the servicer who is generally responsible for collecting loan payments from borrowers, performing property inspections and other property-related activities.

A master servicer "typically serves in a fiduciary capacity and is generally responsible for collecting cash and data from primary servicers and then providing that cash and data, through trustees, to investors."

The MBA rankings that combine different roles do not double-count loans for which a single servicer performs multiple roles, the trade association says.

Also on the list of top-ranked commercial mortgage-backed securities servicers by master and primary servicing volume are Wells Fargo Commercial Mortgage ($45.75 billion), Bank of America ($32.29 billion), ORIX Capital Markets ($25.17 billion), KeyBank REC ($23.38 billion), GEMSA Loan Services ($20.85 billion), Prudential Asset Resources ($6.82 billion) and Principal REI ($5.48 billion).

Who are the largest servicers for life companies and other private investors? The MBA data show GMAC heading up this list too with a $65.09 billion portfolio. The other large servicers in this category are GEMSA ($32.39 billion), Prudential Asset Resources ($24.28 billion) and Northmarq Capital ($17.27 billion).

When it comes to the multifamily side, Deutsche Bank Mortgage Services ($17.49 billion), Washington Mutual ($17.15 billion), GMAC ($13.62 billion) and ARCS Commercial Mortgage ($12.14 billion) are the largest Fannie Mae and Freddie Mac servicers.

And GMAC ($7.44 billion), Reilly Mortgage Group ($5.39 billion), Prudential ($5.26 billion), Midland ($2.56 billion) and Greystone Servicing ($2.08 billion) are the largest FHA servicers.

The MBA also asked servicers to provide information about CMBS loans on which they are the "named special servicer" - that is, where the firm stands ready to service the loan should problems develop, such as delinquency, develop.

The leading named special servicers for 2004 are Lennar Partners ($108.17 billion), GMAC ($94.61 billion), Midland ($49.11 billion) and ARCap Servicing ($43.12 billion).

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