Fitch: U.S. CMBS Servicers Improve Loan Assumption Performance, Further Efficiency Possible.CHICAGO -- U.S. CMBS CMBS See: Commercial Mortgage Backed Securities servicers are doing a better job of cutting down loan assumption processing times without compromising underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , even when faced with increasingly structured and complex loans. However, there remains opportunity for increased efficiency, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. in a new report. Loan requirements, such as guaranties, cash management features, and performance covenants have complicated the CMBS loan assumption process in recent years. However, Fitch's latest research shows that lead servicers have reduced their processing time even with more complex loans and increased volume, with a 25% improvement since 2004-2005 and 22% since 2006. Additionally, the number of assumptions continued to increase on an annual basis, to 1,411 recorded in 2007 compared to 1,245 in 2006. Regardless, Fitch fitch: see polecat. continues to believe that servicers can work to better communicate assumption requirements to borrowers to help reduce their information delivery time, according to Senior Director Richard Carlson. 'Proactive servicers can streamline the overall process by considering the particular needs of the consenting parties when performing their initial analysis and tailoring their writeups to reflect these needs,' said Carlson. 'While this may require additional front-end processing time, it could significantly reduce the back-end time without adding risk to CMBS transactions.' 'Assumed Loans in US CMBS: Process and Performance' is available at www.fitchratings.com under the following headers: Structured Finance Operational Risk Special Reports Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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