GMAC Commercial Still Largest CRE Servicer
A midyear ranking of top commercial mortgage servicers by the Mortgage Bankers Association shows GMAC Commercial Holding continuing to head up the list, with a total servicing portfolio of $219.71 billion.
No. 2 on the list - which takes into account the total of primary and master servicing in all servicing areas including commercial mortgage-backed securities servicing and life servicing - for the period ending June 30 is Wachovia with a $203.01 billion portfolio, followed by Midland Loan Services ($142.57 billion), GEMSA Loan Services ($68.42 billion), Bank of America ($59.24 billion); Wells Fargo Commercial Mortgage Servicing ($57.47 billion), Prudential Asset Resources ($43.89 billion), KeyBank REC ($39.53 billion), Washington Mutual Bank ($35.82 billion) and NorthMarq Capital ($27.32 billion).
Almost all the top servicers have added to their portfolios since the MBA's December 2004 ranking.
However, Prudential Asset Resources has seen its portfolio decline from about $44 billion to about $43 billion over this period. As well, Orix has been displaced from its No. 10 ranking and is at No. 11 for the latest period, with its portfolio down to about $26 billion, from about $28 billion for the previous period.
The MBA survey only takes into account servicers with a total of at least $1 billion in master, primary or special servicing on CMBS loans.
Ranked solely on the basis of CMBS primary and master servicing volume, Wachovia heads up the list with $132.78 billion, with GMACCH next at $118.85 billion. For the period ending December 2004, Wachovia had a $117.56 CMBS master and primary servicing portfolio and was ahead of GMACCH, whose portfolio was then at $111.49 billion, even at that time. Asked about their growth, Alan Kronovet, managing director and head of Wachovia's servicing group, told Commercial Servicer that Wachovia has been "very active" in purchasing servicing rights over the last five to six years. He expects this to continue as the CMBS market continues to grow.
Michael Lipson, EVP, global servicing, GMAC Commercial Mortgage, told Commercial Servicer that GMAC has been a "very aggressive" buyer of servicing rights, acquiring over $20 billion in servicing rights related to CMBS and other types of servicing, and had their best year ever. Even then, Wachovia has been able to capture a larger market share in this area, he said.
Midland Loan Services is the No. 3 servicer ranked by CMBS primary and master servicing volume, with $84.25 billion, followed by Wells Fargo Commercial Mortgage Servicing with $52.52 billion, and Bank of America with $36.45 billion. Rounding out the list of top 10 servicers in this area are KeyBank REC ($27.17 billion), GEMSA Loan Services ($24.81 billion), ORIX Capital Markets ($23.41 billion), Prudential Asset Resources ($7.53 billion) and Principal Real Estate Investors ($6.43 billion).
All the top CMBS servicers, except for one, have also seen their servicing portfolios grow in tandem with the growth in CMBS issuance this year. (As of midyear, it looked as though CMBS issuance for 2005 would set a new record.) The exception is ORIX Capital Markets, which has seen its CMBS servicing volume drop off approximately 9% to about $23 billion, from about $25 billion for the previous period. The servicer is also at No. 8 in the latest rankings, down from No. 6 for the previous period.
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