Competition in the universe of special servicers can be strong , and it may only grow stronger once the current spate of peak-market problem loans are worked through and servicers are left with a finite pie of defaulted loans. “Truth be told, much of the workout activity has occurred already in CMBS,” asserted Glenn Brill, managing director of real estate solutions for FTI. “Demand is going to fall.”
To benefit their bottom lines, some special servicers are seeking additional fee opportunities. “If you are a special servicer that is affiliated with a B-piece-owning entity and all the B piece has lost value, then the only thing left is the special servicing fees that come from servicing those loans,” explained David Rodgers, principal at Park Bridge Financial.
Read more...Special Servicers’ New Revenue Drive via CPExecutive.com