Wells Fargo Top Servicer of Commercial Mortgages

Wells Fargo Bank is by far the most active servicer of commercial mortgages, according to a survey by the Mortgage Bankers Association. The bank serviced, as primary and master servicer, a total of 42,829 loans with a balance of $476.2 billion at mid-year. Its portfolio is some 54 percent greater than that of PNC Real Estate, which has the second largest servicing portfolio, at $308.5 billion of mortgages. Capmark Finance Inc., meanwhile, has the third-largest servicing portfolio, with $248.7 billion. At the end of last year, Wells' portfolio placed it in a distant fourth place in a similar MBA ranking. But its acquisition of Wachovia Bank catapulted it to the top of the ranks. A direct comparison to previous periods cannot be made because of reporting nuances by servicers. But the MBA servicer ranking, which is based on a survey, is the best available gauge of servicer activity. The bulk of Wells' servicing portfolio is comprised of loans it handles on behalf of securitized trusts. In fact, nearly 84 percent of the loans it services are owned by CMBS, collateralized debt obligations or other asset-backed issues. That's a far greater proportion than most of its competitors, such as Midland (46.4 percent) and Capmark (52.7 percent), which also are very active servicers of agency loans, by virtue of their affiliation with agency lenders, banks or insurance companies. Midland, meanwhile, led all servicers of loans provided on behalf of Fannie Mae and Freddie Mac. That's no surprise, given that it is affiliated with Red Mortgage Capital, the most active lender under Fannie's Delegated Underwriting and Servicing program, as well as PNC ARCS, which had perennially ranked among the most active DUS lenders. Indeed, last year, PNC Real Estate was the top Fannie lender, with $5.6 billion of volume, up from $1.7 billion a year earlier. Gemsa Loan Services led a ranking of servicers for life insurance company-held loans. It services 2,458 loans totaling $40.3 billion. Behind it was Prudential Asset Resources, with 2,302 loans totaling $26.85 billion, and PNC Real Estate, with 1,621 loans totaling $26.28 billion. LNR Partners Inc. remained atop a ranking of named special servicers of securitized mortgages. But what previously had been a virtually insurmountable lead has been whittled away. It is named special servicer for 15,223 loans with a balance of $195.1 billion. CWCapital, meanwhile, was second with 13,387 loans totaling $170.1 billion and Centerline Servicing Inc. was third with 12,270 loans totaling $112.9 billion. CRE NEWS
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