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KeyBank Reveals Commercial Mortgage Servicing Acquisition Deals

""KeyBank Real Estate Capital"":https://www.key.com/corporate/financing/commercial-real-estate-loan-investment.jsp, the commercial real estate business unit of ""KeyCorp"":https://www.key.com/personal/index.jsp?key=com, entered into agreements with Bank of America and Berkadia Commercial Mortgage that will lead it to become one of the nation's largest commercial mortgage servicers.


According to a company release, BofA held a commercial mortgage servicing portfolio of approximately $110.5 billion as of the end of March. The transaction also includes a CMBS special servicing portfolio of about $14 billion from BofA. KeyBank says it plans to purchase substantially all of the third party CMBS and special servicing rights from the bank's Global Mortgages & Securitized Products business.

The transaction will give KeyBank a servicing portfolio of approximately $205 billion and place it as the third largest servicer of commercial and multifamily loans in the nation.


KeyBank also entered into a long-term sub-servicing agreement with Berkadia. As part of the agreement, Berkadia will act as sub-servicer on all CMBS primary servicing acquired from BofA. KeyBank will also acquire Berkadia's CMBS special servicing business.

After closing the agreements with Bank of America and Berkadia, KeyBank will be a special servicer on approximately $47 billion of CMBS, making it the fifth largest CMBS special servicer.

KeyBank also holds the highest commercial servicer ratings from Morningstar Credit Ratings LLC and S&P as a CMBS master, primary, and special servicer, the company stated in a release.

""Acquiring these portfolios allows us to further leverage our highly-rated servicing platform,"" said Marty O'Connor, EVP and head of KeyBank real estate capital loan servicing and asset management. ""Our existing partnership with Berkadia will allow us to quickly integrate the Bank of America portfolios.""

""This agreement allows KeyBank to once again take advantage of our highly scalable and highly rated mortgage servicing platform,"" added Mark McCool, EVP and head of servicing for Berkadia.

KeyCorp is headquartered in Cleveland, Ohio and provides deposit, lending, cash management, and investment services to individuals and small and mid-sized businesses in 14 states as KeyBank National Association.

About Author: Esther Cho


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