Fitch to Focus on CMBS Outsourcing

Responding to new trends in the industry, Fitch Ratings says it will place increased emphasis on monitoring the outsourcing of some commercial mortgage servicing functions.Specifically, Fitch said it will pay more attention to the review of quality control procedures and management oversight practices to ensure that the functions are being performed effectively. "Fitch views traditional outsourcing of commercial mortgage servicing functions as a viable alternative for servicers looking to improve the quality of their operations and decrease costs," said Stephanie Petosa, a senior director at Fitch. "To ensure that servicing quality is maintained, Fitch's review and analysis focuses on ongoing oversight procedures, documented training programs, and performance metrics." Fitch can be found online at http://www.fitchratings.com.