Investor concerns have risen in recent months around conflicts of interest among U.S. CMBS special servicers, according to Fitch Ratings. In response, Fitch has issued the first of its expanded servicer reports for U.S. CMBS commercial mortgage servicers.
The reports highlight areas that Fitch deems industry best practices or servicer specific deficiencies. In addition, the reports include a discussion of corporate governance and conflicts of interest, investor disclosure, and affiliated companies.
The first of Fitch's expanded reports focuses on LNR Partners LLC, the largest CMBS special servicer. In it, Fitch offers its opinion on LNR's use of an affiliate ('Auction.com') to sell of specially serviced assets. Fitch reviewed loans disposed of via 'Auction.com' and the fees ultimately paid by the trust to the affiliate.
The enhanced servicer reports will continue to be issued throughout the year as Fitch visits servicers. Fitch expects the reports to continue to evolve as it actively solicits feedback from investors and market participants to improve aspects of the reports.
Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter:
'http://forms.fitchratings.com/forms/CM_MAROptinformLayout'
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings
Sandro Scenga, +1-212-908-0278
Media Relations,
New York
sandro.scenga@fitchratings.com
or
Adam
Fox, +1-212-908-0869
Senior Director
Fitch, Inc.
One
State Street Plaza
New York, NY 10004
