The affirmation of the special servicer rating reflects Fitch's assessment of the company's asset management capabilities for defaulted/non-performing commercial real estate assets and extensive workout experience having resolved almost 500 CMBS loans in 2013, its experienced management team, proprietary asset management technology, and multi-layered internal control framework.
The affirmation also considered the 2013 spin-off of the Real Estate Dispositions Team (REDS) from the special servicer into a new company that co-brokers the sale of loan and REO assets. While Fitch recognizes the benefit of dedicated brokerage resources in the disposition process, our servicer reviews continue to focus on the potential conflicts of interest when engaging affiliates. REDS has co-brokered approximately 85% of all CWCAM loans and REO assets since REDS' formation in 2013 and currently works exclusively for CWCAM. Based on a review of the brokerage commissions charged, Fitch concluded the fees did not appear to be above market terms and noted that REDS received 23% of such brokerage fees for the co-brokerage services it provides.
In 2013 CWCAM marketed 134 non-performing commercial mortgage assets with a UPB of
CWCAM, which is among the three largest CMBS special servicers, acts as special servicer on behalf of affiliates who own controlling positions of CMBS or CDO transactions or for third-party clients. Approximately 44% of CMBS transactions serviced are for affiliate companies.
CWCAM's current CMBS strategy with respect to new issue transactions is to act as an independent special servicer for clients who contribute capital to purchase B-pieces and CWCAM contributes underwriting and/or surveillance in addition to being named as the special servicer. The company currently does not deploy capital for the acquisition of new issue CMBS B-pieces on its own or with affiliates; however, has deployed capital to retain control of legacy CMBS transactions.
The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated
Additional information is available at 'www.fitchratings.com'.
--'Rating Criteria for U.S. Commercial Mortgage Servicers' (
--'Rating Criteria for Structured Finance Servicers' (
Rating Criteria for U.S. Commercial Mortgage Servicers
Rating Criteria for Structured Finance Servicers
Source: Fitch Ratings
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