Biggest Commercial Servicers Keep Gaining Share: 'The biggest issue right now is borrowers are getting smarter about shopping for insurance.'.

The top five commercial mortgage servicers as of midyear 2007 are the same ones that were on the list as of midyear 2006. And they have further consolidated their positions with significant additions, for the most part, to their servicing volume.

Wachovia Securities was the largest commercial and multifamily mortgage servicer as of midyear, at $356.6 billion in primary and master servicing volume, the Mortgage Bankers Association reports.

According to the trade association's midyear update, the other large commercial mortgage servicers are Capmark Finance ($252.3 billion), Midland Loan Services ($245.5 billion), Wells Fargo ($153.2 billion) and KeyBank Real Estate Capital ($133.2 billion).

As of midyear 2006, Wachovia's portfolio was at $270 billion, Capmark, the servicer with the smallest gain over this period, was at $245 billion, Midland Loan Services' portfolio had reached $173 billion, Wells Fargo had a commercial mortgage servicing portfolio of $110.5 billion and KeyBank REC's portfolio was at $90.75 billion.

Stacey Berger, EVP, business development for Overland Park, Kan.-based Midland Loan Services, sees it as no accident that the same servicers continue to hold sway, and have continued to do so for a number of years. "If you dig into the portfolios, the vast majority of them are CMBS purchase servicing rights. There is a limited universe of companies that are able to commit the resources to be able to acquire servicing rights. It's a business that requires a lot of capital, expertise, technology and very efficient operations. There just aren't a lot of people that can compete in that business."

Breaking out the rankings by the largest master and primary servicers of U.S. commercial mortgage-backed securities, collateralized debt obligation and other asset-backed securities, Wachovia, Capmark, Midland, Wells Fargo and Bank of America are the largest servicers, the MBA reports.

Horsham, Pa.-based Capmark, which was GMACCM until its sale a couple of years ago, has been focusing on its core business and getting out of ancillary businesses (including its MortgageRamp and Realpoint businesses) so as to gain operating efficiencies, according to Michael Lipson, a Capmark EVP. In this process, Capmark has slipped from its spot at the head of the list.