McLEAN, VA-Freddie Mac has received an initial commercial mortgage backed securities (CMBS) special servicer rating of 'CSS2-' from Fitch Ratings. The designation highlights Freddie Mac's special servicing operations—which often tend to be overlooked in favor of its origination and securitization activities.
Currently the GSE is the special servicer for approximately 8,800 loans totaling $94.4 billion held in its multifamily portfolio. The GSE, however, is not the special servicer on securitized multifamily mortgages, except K-Deals in its P Series, which are fully wrapped by Freddie Mac and backed by seasoned assets.
The rating will help Freddie Mac maintain creditability in the market, Michael Lipson, senior vice president of Multifamily Asset Management and Operations for Freddie Mac, tells GlobeSt.com. "At the end of the day, this is about recognition from the industry."
Freddie Mac will be able to measure itself against comparable special servicers and related benchmarks because of it. The rating will also allow the GSE's own regulator to better understand where Freddie Mac is on the spectrum of quality and activities in the space.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
