Wachovia Takes Top Spot in CRE Servicing.

The list of the top commercial mortgage servicers at the end of 2005 show the same companies heading up the list, but the rankings from the Mortgage Bankers Association show that GMACCH has been edged out by Wachovia for the No. 1 spot.

Wachovia's total servicing volume, including primary and master servicing, was at $233.18 billion as of Dec. 31, 2005 while GMACCH, which has held the No. 1 spot for a few years now, was at $231.45 billion. No. 3 on the list is Midland Loan Services, at over $159 billion, followed by Wells Fargo, with $95.52 billion, and KeyBank REC, with $84.94 billion.

Leslie Fairbanks, Wachovia's Charlotte, N.C.-based head of real estate services, told Commercial Servicer that they mainly owe their gains to the strength of their origination platform, which originates loans of different types and had a very strong year in 2005. This strong origination performance rubbed off on the servicing side since they service the loans originated.

Ms. Fairbanks expects that as new products come out on the securitization side, Wachovia will get new servicing opportunities. Another prospect for growth is on the international side. Now that Wachovia's origination efforts are international, the servicing side is also looking to "support their efforts there."

Michael Lipson, executive vice president, GMACCH's global servicing group, also believes there is more scope for international growth. He sees growth in Asia and Europe as "unparalleled" and he expects that net growth has to come from those parts of the world, considering that the U.S. market is more mature and subject to a lot of amortization activity. In the U.S. market, consequently the avenues for growth are more limiting "unless you have major acquisitions of companies."

He said that his group is still growing and "those tables don't mean that much to me." For 2005, the group had a 10% growth rate, according to him, adding $21 billion to the portfolio, net of amortization. Mr. Lipson sees the market as consolidating and GMACCH plans to be one of the consolidators, actively buying in the originations market and growing internationally.