Fitch Spotlights Complexity of Servicing CMBS

Servicing U.S. commercial mortgage-backed securities deals is becoming more complex because loan and deal structures and the regulatory framework have grown increasingly complicated, according to a special report by Fitch Ratings."Non-standard servicing opportunities for CMBS servicers are becoming more prevalent, and come with additional covenants, trigger events, and reporting requirements," said Fitch senior director Richard Carlson. "Servicers increasingly deal with third-party investors who have a say in the servicing of the loan, which makes it all the more important that the CMBS servicer is able to service the loan in a way that fulfills its duties under the servicing standard while satisfying third-party investors." Another primary concern for CMBS servicers is the decreased availability and increased cost of windstorm insurance, the rating agency said. "The State of the U.S. CMBS Servicing Market -- Anything but Standard" is available on Fitch's website at http://www.fitchratings.com.