Posted on Tuesday, February 2, 2010
Topping the list of U.S. master and primary servicing was Wells Fargo/Wachovia Bank with $473.8 billion, followed by PNC Real Estate/Midland Loan Services with $322.9 billion, Berkadia Commercial Mortgage with $217.9 billion, Bank of America Merrill Lynch with $131.7 billion, KeyBank Real Estate Capital with $128.5 billion, and GEMSA Loan Services LP with $102.3 billion.
Wells Fargo/Wachovia Bank, PNC/Midland, Berkadia, and Bank of America Merrill Lynch were also ranked as the largest master and primary servicers of commercial/multifamily loans in U.S. commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO), and other asset-backed securities (ABS). The largest servicers for life companies included GEMSA Loan Services, PNC/Midland, Prudential Asset Resources, Northmarq Capital, and Northwestern Mutual, and the largest Fannie Mae/Freddie Mac servicers were PNC/Midland, Wells Fargo/Wachovia Bank, Deutsche Bank, and Berkadia.
The top master and primary servicer of commercial bank and savings institutions loans was TriMont Real Estate Advisors, and GEMSA was ranked as the top credit company, pension funds, REITs, and investment funds servicer. PNC/Midland was the top Federal Housing Administration (FHA) and Ginnie Mae Servicer, and Wells Fargo/Wachovia took the top spot for mortgages in warehouse facilities. For other investor loan types, Berakadia ranked the highest.
Despite seemingly high servicing volumes, the amount of commercial and multifamily mortgage debt maturing in 2010 and 2011 is relatively low, according to the 2009 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes also released Monday by MBA.
“Commercial and multifamily mortgages tend to be long-term loans, often for ten years or more,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “The fact that a disproportionate share of commercial and multifamily mortgages were made in 2005, 2006, and 2007 means that for most investor groups, only a fraction of the balance will be maturing in the next couple of years.”
Currently, there is a balance of $1.45 trillion of outstanding mortgages held by non-bank investors. Of this total, only 13 percent ($183.9 billion) will mature in 2010 and a mere 7 percent ($99.8 billion) will mature in 2011. In addition, the survey found that maturities vary considerably depending on the type of investor holding the loan.
“Investor groups’ maturity schedules are generally designed to match their liabilities,” Woodwell explained. “Many maturing mortgages have built-in extension options, and most investor groups and servicers have considerable discretion in how they deal with loans that may not be able to immediately refinance at maturity.”
Only small shares of the commercial and multifamily mortgage debt held by life insurance companies, Fannie Mae, Freddie Mac, or FHA will be coming due in 2010 or 2011. As a result, just 2 percent of the outstanding balance of multifamily mortgages held or guaranteed by Fannie Mae, Freddie Mace, FHA, and Ginnie Mae will mature in 2010, and life insurance companies will only see 7 percent of their outstanding mortgage balances mature this year.
Among CMBS, 12 percent will come due in 2010, including 7 percent of the $650 billion of loans in fixed-rate conduit CMBS and 72 percent of the $54 billion of loans in floating-rate and large-borrower CMBS. In addition, 32 percent of commercial mortgages held by credit companies and other investors will mature in 2010.