DBRS Confirms CMLS’ Primary Servicer Evaluation of Good; Issues Special Servicer Evaluation of Adequate

DBRS has today confirmed the evaluation of Good for CMLS Financial Ltd.’s (“CMLS” or “The Company”, formerly Canadian Mortgage Loan Services Limited) Primary Commercial Mortgage Servicing capabilities. In addition DBRS has assigned a rating of Adequate for The Company’s Commercial Mortgage Special Servicing capabilities.

CMLS, headquartered in Vancouver, is the largest private commercial mortgage servicing company in Canada. The Company, originally known as Penmor Investment Services Ltd., has operated continuously since 1974, services for a variety of investors, including banks, insurance companies, investment managers, private lenders, as well as for CMBS trusts. In addition to mortgage loan servicing, the employee-owned company maintains a significant commercial mortgage origination business as well as a mortgage valuation business, and has been consistently profitable.

Among the strengths of CMLS are its experienced and tenured senior management team and its long history of third party servicing, including CMBS. Additionally, The Company maintains a strong control environment and comprehensive internal audit program. Among CMLS’ challenges are to continue to keep up servicing portfolio growth as well as expanding its servicing capacity for new types of servicing assignments, such as special servicing. The senior management team has effectively managed company growth over the past several years and is planning appropriately for future growth and special servicing initiatives.

As of June 30, 2011, the CMLS servicing portfolio consisted of 1,180 loans totaling $4.6 billion, compared with 913 loans totaling $3.02 billion as of September 2008. Since September, 2008, The Company has added 12 investor clients to its servicing portfolio. In addition, the portfolio continues to be well diversified by property type and geography.

The servicer evaluation reflects a comprehensive review of the CMLS organizational structure, the management team, asset administration, loss management, technology, staffing and training, procedures and controls, and financial strength.

Notes:

All figures are in Canadian dollars unless otherwise noted

The applicable methodology is the Commercial Mortgage Servicer Evaluation which can be found on our website under Methodologies.