Fitch Assigns First-Time CMBS Special Servicer Rating to Fannie Mae, Multifamily

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns Fannie Mae, Multifamily (Fannie Mae) a first-time commercial mortgage special servicer rating of 'CSS2'. The rating does not address the single family residential aspect of Fannie Mae's business.

The rating reflects the high performance in overall servicing ability demonstrated by the multifamily mortgage division of Fannie Mae to work out defaulted commercial mortgage loans, primarily secured by apartment buildings with five or more units, acquired by Fannie Mae from its network of Delegated Underwriting and Servicing (DUS) Lenders.

Fannie Mae's special servicer rating reflects Fitch's assessment of the loss mitigation group's management team, asset management capabilities, internal controls, technology, financial strength, and knowledge of the multifamily lending environment combined with the support of its DUS network. The rating also considers Fannie Mae's use of third-party vendors to perform asset management and disposition services for real estate owned (REO) assets. While certain key special servicing functions are outsourced to vendors, Fitch noted Fannie Mae's REO team, which is highly experienced, performs a direct oversight of all assets and retains approval authority for all workout decisions. Additionally, all assets are maintained on Fannie Mae's asset management system, vendors are subject to annual performance reviews, and the REO team has the ability to perform the functions outsourced without interruption.

The rating also considers the company's financial strength backstopped by the U.S. Treasury. Due to the concentration of servicing for multifamily assets, Fannie Mae's servicer rating is limited to the '2' category.

As of June 30, 2015, Fannie Mae was the named special servicer for approximately 32,000 loans totaling $212 billion secured by multifamily properties of which 85% by balance are mortgage backed securities. As of the same date, the loss mitigation group was responsible for managing defaulted loans and REO assets inclusive of approximately $106 million of loans delinquent 60 days or more, representing .05% of the portfolio for the same period. The group has successfully resolved approximately $15 billion of loans since 1988, collateralized by properties throughout the U.S. resolved through foreclosure, liquidations, return to performing, and less frequently through modifications.

Fitch's servicer rating methodology is described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria', dated Feb. 14, 2014 and 'Rating Criteria for Structured Finance Servicers' dated April 23, 2015, which are available on Fitch's web site www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

Additional Disclosures

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996760

Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151215006660/en/

Fitch Ratings
Primary Analyst:
Adam Fox, +1-212-908-0869
Senior Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
James Bauer, +1-212-908-0782
Associate Director
or
Committee Chairperson:
Daniel Chambers, +1-212-908-0343
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• We Auto in Baton Rouge, LA, Makes Used Vehicle Shopping Easier for Drivers Across the Baton Rouge Area
• Senhwa's CX-5461 Opens a New Frontier in Photoimmunotherapy; Multinational Study Published in Nucleic Acids Research
• Bang & Olufsen appoints new executive leadership team