The recent economic crisis has compounded the financial stress on commercial mortgage-backed securities servicers. Financial instability and the specter of bankruptcy has increased most notably among smaller servicers, especially smaller special servicers as banks are declining to renew working capital lines under current terms or are executing margin calls.

According to a new report released by Fitch Ratings, "U.S. CMBS Servicers Under Stress - Bankruptcies and Mergers/Consolidations," several troubled financial institutions have been acquired or have merged. Many of these institutions have CMBS master and/or primary servicing operations, which will have to be combined.

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