S&P: GMACCM Passes Along Terror Expenses

GMAC Commercial Mortgage, Horsham, Pa., has passed along terrorism-related legal expenses to all the commercial mortgage-backed securities deals it services that include loans originated prior to Sept. 11, 2001, according to Standard & Poor's.The expenses relate to a lawsuit filed by a Texas borrower against GMACCM after the servicer required the borrower to buy terrorism insurance. The case was certified as a class action suit by a Dallas court in June, according to a GMACCM spokesman. Because of the certification, GMACCM went ahead and passed on the legal costs to the deals subject to the class action. However, the servicer is appealing the decision and expects the certification to be reversed, according to the spokesman. S&P said the cost passed along by GMACCM to each trust affected by the action is $2,357, and the total cost recovered is $419,478.