5-13-16

10A — May 13 - 26, 2016 — Financial Digest — M id A tlantic

Real Estate Journal

www.marejournal.com

F inancial D igest

orningstar Credit Ratings, LLC af- firmed its ‘MOR CS1’ Morningstar also revises its special servicer ranking forecast for Berkadia to Negative Morningstar Credit Ratings affirms ‘MOR CS1’ & ‘MOR CS2’ for Berkadia Commercial Mortgage M named special servicer on 18 CMBS transactions consisting of 957 loans with a UPB of ap- proximately $1.3 billion.

the servicer’s strong manage- ment team and professional depth, excellent technology platform, effective leveraging and oversight of its seasoned and growing operations in In- dia, investor reporting exper- tise and stringent subservicer monitoring procedures for commercial mortgage-backed securities (CMBS) transac- tions, extensive internal audit program, diligent portfolio management practices, and emphasis on training. As a special servicer, Berka- dia has adequate staffing re- sources, controlled and proac- tive loan-recovery procedures,

effective technology, and gen- erally favorable asset-resolu- tion results albeit for a modest level of activity predominantly consisting of smaller-balance loans. Morningstar’s nega- tive forecast for the ranking reflects Berkadia’s modest operational scale for special servicing combined with its reduced volume of active and resolved assets during the past few years. As of Dec. 31, 2015, Berka- dia’s primary- and master- servicing portfolio consisted of 19,736 loans with an ag- gregate unpaid principal bal- ance (UPB) of approximately

$219.8 billion. These figures exclude 3,512 loans with a UPB of $7.1 billion repre- senting construction loans, some loans located outside the United States, and loans with less than full servicing duties. Berkadia was the primary and/or master servicer on 285 CMBS transactions and 92 Freddie Mac securitizations. CMBS loans, including the 92 Freddie Mac securitiza- tions, comprised approximate- ly 23 percent by UPB and 27 percent by loan count of the total primary- and master- servicing portfolio. As of Dec. 31, 2015, Berkadia was the

commercial mortgage primary and master servicer rankings and its ‘MOR CS2’ commer- cial mortgage special servicer ranking for Berkadia Com- mercial Mortgage LLC (Berkadia) . Morningstar also revised its special servicer ranking forecast for Berkadia to Negative from Stable and maintained its Stable forecast for the primary and master servicer rankings. Mo rn i ng s t a r a f f i rmed Berkadia’s primary and mas- ter servicer rankings based on

Berkadia’s active special- servicing portfolio had a total UPB of approximately $52.8 million and contained 28 loans with a UPB of approximately $51.9 million and three real es- tate owned properties with an aggregate balance of $860,000. The CMBS component of the active special-servicing port- folio had a total UPB of ap- proximately $8.9 million and contained 22 assets including three REO properties. Morningstar rankings , forecasts, and assessments contained in this rankings announcement are not assess- ments of the creditworthiness of an obligor or a security and thus are not credit ratings sub- ject to NRSRO regulations. n Appraisal Institute calls on Congress to address Appraisal Regulation CHICAGO, IL — The Ap- praisal Institute joined the American Bankers Associa- tion , the National Associa- tion of Home Builders , the National Association of Realtors and The Appraisal Foundation in calling on Congress to hold a hearing this year on the future of appraisal regulation. The groups noted that the federal regulatory structure for real estate appraisal es- sentially has been untouched since enactment of the Fi- nancial Institutions Reform, Recovery and Enforcement Act of 1989 and that the most re- cent Congressional committee hearing devoted to appraisal oversight was four years ago. The organizations wrote to the chair and ranking mem- bers of the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Commit- tee, in addition to leaders of the relevant subcommittees. Read the Senate letter and the House letter. The groups asked Congress to focus on topics including the current appraisal regulatory framework, appraisal informa- tion systems, the impact of the recent regulatory reforms on the appraisal profession, and the availability of qualified ap- praisers, particularly in rural areas. n

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