Top CRE Servicers Still Capitalizing on Scale.

In the commercial mortgage servicing world, the biggest servicers are continuing to add servicing volume, and continuing to accrue economies of scale which strengthen their positions further. A midyear ranking of commercial mortgage servicers by the Mortgage Bankers Association reveals little change at the top compared to last year.

Also, almost all of the top-ranked servicers have added to their servicing portfolios. The rankings are based on the MBA's survey of large commercial mortgage-backed securities servicers - with at least $1 billion in named CMBS servicing volume - for the period ending June 30, 2004.

GMAC Commercial Holding was the No. 1 commercial mortgage servicer, in terms of total named servicing volume, with a $240.69 billion portfolio. The commercial mortgage behemoth had a holding of $172.28 billion at June 30, 2003 and has gained about 40% in servicing volume. The servicer acquired CapMark Services, which had a $75.59 billion portfolio last June, and thereby added to its holdings. (CapMark was ranked fourth in total named servicing volume last year.)

No. 2 on the list, Wachovia Securities, is well behind GMAC, with a $140.51 billion portfolio size. Wachovia has grown its portfolio about 45% from the previous period, when it held $96.07 billion in servicing volume.

Also on the list of top CMBS servicers by total named servicing volume - which includes the servicer's CMBS, life company and other commercial mortgage loans serviced - are Midland Loan Services, $102.43 billion (up 30% from $78.82 billion); Lennar Partners, $100.57 billion (n.a.); GEMSA Loan Services, $60.67 billion (a 5% gain from $57.04 billion); Wells Fargo Commercial Mortgage Servicing, $44.26 billion (a 25% increase from $35.2 billion); Bank of America, $44.22 billion (a 91% gain from $23.18 billion); Prudential Asset Resources, $43.51 billion (up 23% from $35.02 billion); ARCap Servicing, $42.61 billion (n.a.); and Washington Mutual Bank, $32.43 billion (up 13% from last year's $28.535 billion).

GMAC Commercial is also at the top of the list, with a $147.85 billion portfolio, when the rankings are based on total named CMBS servicing volume. The servicer has added ...