Commercial Servicer: Ranks of Top CMBS Servicers Remain the Same this Year.(Brief Article)

The same commercial mortgage servicers that were at the top of the list for 2001 dominate the Mortgage Bankers Association's list of top commercial servicers for the first half of 2002. As a spokesman for the MBA put it, "It is fairly concentrated at the top, the same firms are at the top, however you slice it and dice it." And considering that these firms are able to use their existing critical mass to further strengthen their servicing portfolios, it doesn't look as though the picture is going to change anytime soon.

GMAC Commercial Mortgage, with a total servicing portfolio of $154.01 billion heads the total servicing volume list (which includes CMBS, life company and other servicing) with a volume more than double that of its nearest competitor Wachovia Securities, whose total servicing portfolio is at $74.6 billion. CapMark Services ($73.43 billion), Midland Loan Services ($73.06 billion) and GEMSA Loan Services ($59.25 billion) are the other top five servicers in terms of total servicing volume. Last year however, GMACCM did not participate in the MBA survey and was not on the list (ORIX Real Estate Capital Markets which was ranked fifth for 2001 is ranked sixth for the first half of 2002).

The breakdown by total CMBS servicing volume is GMACCM ($92.9 billion), Midland Loan Services ($55.22 billion), Wachovia Securities ($50.348 billion), CapMark Services ($39.72 billion) and ORIX RE Capital Markets ($32.44 billion). Wells Fargo Bank, which ranked fifth last year is now ranked sixth, having been displaced by the addition of GMACCM to the list.

Stacey Berger, EVP, Midland Loan Services, believes that the rankings "are indicative of continued consolidation in the servicing business." He expects the largest servicers to get bigger, thanks to continued consolidation, which enables servicers to reap the economies of scale through a large portfolio. He expects the consolidation to continue since "this ...