NEW YORK--()--Wells Fargo Bank N.A. has numerous controls and procedures in place to handle the influx of modified U.S. CMBS loans being returned from special servicing, according to Fitch Ratings in its new report on the bank's servicing platform.
Fitch's recent annual evaluation of Wells Fargo's CMBS servicing platform highlights changes made by the bank to handle the increase in loan modification volume, particularly for larger balance loans. Fitch has observed delays in booking modified loans and the lack of information of loans' modified terms across CMBS. This lack of information impacts the ability of investors to assess bond cash flows.
Wells Fargo has addressed the increase in loan modifications by forming of a specialized loan modification team that was able to be more proactive in the workout process through increased communication and document review prior to a modification being executed. Wells Fargo's team is staffed with highly experienced asset managers, attorneys, loan document experts, and loan administrators.
Wells Fargo is also in the final phase on a technology integration plan that will merge the legacy Wells Fargo and Wachovia servicing platforms.
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Wells Fargo Bank, N.A.