DBRS Confirms CMLS’s Primary Servicer Evaluation of Superior and its Master and Special Servicer Evaluations of Adequate

DBRS, Inc. (DBRS) has today confirmed its evaluation of CMLS Financial Ltd.’s (CMLS or the Company) Commercial Mortgage Primary Servicing capabilities of Superior. Additionally, DBRS has confirmed the evaluations of Adequate for the Company’s Commercial Mortgage Master and Commercial Mortgage Special Servicing capabilities.

CMLS is among the largest independent commercial mortgage servicing companies in Canada. It is headquartered in Vancouver, with a major office in Toronto, and has operated continuously since 1974. CMLS has been consistently profitable and provides services for a variety of investors, including banks, insurance companies, investment managers, private lenders and commercial mortgage-backed security (CMBS) trusts. The employee-owned company also maintains a significant commercial mortgage origination business, a CMBS issuance platform, as well as a mortgage valuation business.

Among the strengths of CMLS are its highly experienced and tenured senior management team and its long history of third-party servicing, including legacy and recently issued CMBS. CMLS also continues to maintain a strong control environment and a thorough internal and external audit program. Finally, the Company exhibits a strong focus on technology, as evidenced by the development and maintenance of its impressive proprietary asset management system. The senior management team at CMLS has effectively managed portfolio growth over the past several years and continues to adapt to the changing needs of its servicing portfolio by hiring new employees as necessary and implementing technology-based servicing efficiencies.

As of December 31, 2016, the CMLS commercial servicing portfolio consisted of 1804 loans totaling $11.98 billion, of which 141 loans totaling $1.67 billion were CMBS. CMLS continues to maintain a diverse roster of investor clients in its servicing portfolio. In addition, the portfolio continues to be well diversified by property type and geography throughout Canada.

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 principal methodology is North American Commercial Mortgage Servicer Evaluations (July 2016), which can be found on dbrs.com under Methodologies.

DBRS will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.