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Fitch Gives Freddie Mac CMBS Special Servicer Rating

""Fitch Ratings"":http://www.fitchratings.com/web/en/dynamic/fitch-home.jsp recognized the strength of ""Freddie Mac's"":http://www.freddiemac.com/ multifamily business, giving the GSE an initial commercial mortgage-backed securities (CMBS) special servicer rating of CSS2, the ratings agency announced.


In a press release, Fitch said the rating ""reflects the ability of the multifamily division of Freddie Mac to work out commercial mortgage loans"" backed by apartment buildings with five or more units and acquired from its network of sellers and servicers.


As of the end of September, Freddie Mac was a special servicer for more than 8,800 loans totaling $94.4 billion in its multifamily portfolio. The company was also involved in the workout of more than 100 loans and several REO assets totaling approximately $1.5 billion. Through loan modifications, foreclosures, and liquidations, Fitch noted Freddie Mac resolved more than $1.0 of loan defaults in 2011, losing on average less than other CMBS special servicers.

""Freddie Mac's commercial servicer special servicer ratings reflects Fitch's assessment of Freddie Mac's management team, asset management capabilities, technology, financial strength, and knowledge of the multifamily lending environment combined with the support of its seller/servicer network,"" Fitch said.

Michael Lipson, SVP of multifamily asset management and operations for Freddie Mac, said the rating is a ""critical part of maintaining credibility in the market.""

""It demonstrates the financial, operational and staff strength as well as our credit capabilities,"" Lipson said. ""We have a good track record of working with all types of sizes of loans to service nonperforming loans.""


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