Combined Wells Fargo-Wachovia Top U.S. CRE/Multifaily Loan Server, Notes MBA Survey

Dees Stribling, Contributing Editor

Washington, D.C–According to the mid-2010 survey of commercial and multifamily mortgage services by the Mortgage Bankers Association, Wells Fargo (including Wachovia) tops the list firms of master and primary servicers in the United States $462.8 billion in loan volume—more than 40,000 loans averaging $11.5 million each. PNC Real Estate/Midland Loan Services Inc. came in second with $307.9 billion; Berkadia Commercial Mortgage was third with $202.6 billion; and Bank of America/Merrill Lynch and KeyBank Real Estate Capital were next with $133.4 billion and $124.7 billion, respectively. All the figures in the survey were tabulated as of June 30, 2010.

The MBA characterizes a primary servicer as responsible for collecting loan payments from borrowers, performing property inspections and other property-related activities. A master servicer has a somewhat different function, being responsible for collecting cash and data from primary servicers and then providing that cash and data, through trustees, to investors. The MBA’s tabulations that combine different roles do not double-count loans for which a single servicer performs multiple roles; also, the organization doesn’t break down the totals by property type, hence the combination of all types of commercial with multifamily.

Still, among Fannie Mae/Freddie Mac servicers—much of which is likely to be in the multifamily sector—PNC/Midland came in first, serving a volume of $56.8 billion in 6,050 mortgages, with the average loan size being $9.4 million. Wells Fargo/Wachovia ($44.7 billion), Deutsche Bank ($26.4 billion), Berkadia ($26.1 billion) and Prudential ($14.2 billion) were the runners-up in the Fannie Mae/Freddie Mac category, according to the MBA survey.

Wells Fargo, PNC/Midland, Berkadia, Bank of America Merrill Lynch and KeyBank are the largest master and primary servicers of commercial/multifamily loans in U.S. CMBS, CDO and other ABS. In that category, Wells Fargo was far and away the largest player at $381.5 billion, more than PNC/Midland ($129.9 billion) and Berkadia ($120.3 billion) and Bank of America/Merrill Lynch ($95.3 billion) put together.

GEMSA Loan Services L.P., PNC/Midland are the largest servicers for life companies, with GEMSA at $35.1 billion barely besting PNC/Midland, which came in at $34.5 billion. The next largest in this category were Prudential Asset Resources, Northwestern Mutual, and Northmarq Capital.

Most of the MBA survey involved properties within the United States, but the organization also tabulated total primary and master servicing for commercial and multifamily loans secured by collateral outside the country. Hatfield Phillips International, an LNR Property Company, topped that list with $33.5 billion in loans. Deutsche Bank, PNC Real Estate, GEMSA Loan Services and Situs Asset Management were next in that category.