TEXT-Fitch assigns Freddie Mac initial CMBS servicer rating
Nov 13 - Fitch Ratings assigns Freddie Mac an initial commercial mortgage-backed securities (CMBS) special servicer rating of 'CSS2-'. The rating reflects the ability of the multifamily division of Freddie Mac to work out commercial mortgage loans, secured by apartment buildings with five or more units, acquired by Freddie Mac from its network of seller/servicers. The rating does not address the single family residential aspect of Freddie Mac's business. Freddie Mac's commercial servicer special servicer rating reflects Fitch's assessment of Freddie Mac's management team, asset management capabilities, technology, financial strength, and knowledge of the multifamily lending environment combined with the support of its seller/servicer network. Although Freddie Mac does not currently perform special servicing functions for securitized mortgages backed by newly originated loans, the asset management and operations group has extensive multifamily workout experience across the United States. As of Sept. 30, 2012, Freddie Mac was special servicer for more than 8,800 loans totaling $94.4 billion secured by multifamily properties that are held by Freddie Mac. As of the same time, the asset management and operations group of Freddie Mac was actively working out in excess of 100 loans and several real estate owned (REO) assets totaling approximately $1.5 billion. The group also successfully resolved more than $1.0 billion of loan defaults in 2011. The loans, which were collateralized by properties throughout the U.S., were resolved through modifications, foreclosure and liquidations, and forbearances with an average loss of below that of typical Fitch rated CMBS special servicers. The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and 'Global Rating Criteria for Structured Finance Servicers' dated Aug. 16, 2010, available on Fitch's web site 'www.fitchratings.com'. Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable Criteria and
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