Fitch Ratings Announces CMBS Small Loan Servicer Rating Program.CHICAGO -- 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. recognizes that there are specialized servicing requirements for unique commercial mortgage loan products. From time to time, due to servicing and issuance trends, a new type of commercial loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. receives attention. One of these products is small balance commercial mortgage loans. Servicing small balance commercial mortgages typically requires greater customer service interaction with borrowers than is necessary with conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the loan servicing. Therefore, asset administration of small loans often requires a more personal touch. Because many of the properties securing these loans are owner-occupied businesses, analyzing physical property inspection reports, monitoring payment histories, and evaluating the credit scores of borrowers is often as, if not more, important than analyzing property operating statements operating statement See income statement. . To recognize these differences, Fitch has created a new rating category 'CMBS Primary Servicer - Small Loans.' Fitch issued its first small balance loan servicer  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. rating to Imperial Capital Bank, when it issued a CMBS CMBS See: Commercial Mortgage Backed Securities primary servicer rating of 'CPS3 Small Loans' on May 26, 2004. Fitch expects to issue additional small loan servicer ratings in the future. Fitch rates commercial mortgage primary, master, and special servicers on a scale of 1 to 4, with 1 being the highest rating. Fitch also qualifies some ratings as 'Large Loans' or 'Small Loans.' Within each of the rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information about Fitch commercial mortgage servicer ratings or rating criteria, refer to the report 'Commercial Mortgage Servicer Rating Criteria,' dated April 11, 2002, available on Fitch's web site at 'www.fitchratings.com.' |
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