DBRS Releases Updated Methodology for North American Commercial Mortgage Servicer Evaluations

DBRS, Inc. (DBRS) has today updated its North American Commercial Mortgage Servicer Evaluation methodology. The methodology, effective as of the date of this press release, supersedes any previously available methodologies.

DBRS deems the changes to not be material, and no rating changes have or will be taken as a result.

When rating a CMBS transaction, the capacity of the servicer is a key analytical consideration because servicing quality can affect the performance of the trust assets from a delinquency, default and recovery perspective and, consequently, may affect the ultimate repayment of rated securities. Because of the importance of the servicing role, DBRS typically performs periodic servicer reviews of master and special servicers in transactions it rates to gain understanding of each company’s servicing capabilities.

A DBRS servicer evaluation incorporates assessments of the following eight criteria:
-- Company structure and management experience.
-- Asset administration, reporting and customer service.
-- Loss management.
-- Technology and systems.
-- Financial condition and outlook.
-- Staff and training.
-- Procedures and controls.
-- Outsourcing, offshoring and vendor arrangements.
The relative importance of each of the criteria varies depending on the servicing role – primary, master or special.

The full methodology providing additional analytical details is publicly available on www.dbrs.com under Methodologies or by contacting us at info@dbrs.com.