Fitch Affirms Berkeley Point's Servicer Ratings

NEW YORK--()--Fitch Ratings has affirmed Berkeley Point Capital LLC's (Berkeley Point) primary servicer rating at 'CPS2' and special servicer rating at 'CSS3+'.

The servicer ratings reflect Berkeley Point's experienced and deep management teams across both primary and special servicing, effective use of technology and track record of continuous system upgrades, strong training program, and particular expertise servicing multifamily loans. The ratings also reflect elevated management turnover, limited workout experience and involvement with non-multifamily commercial real estate property types, its outsourcing relationships, and the company's standalone financial condition following its acquisition in a private transaction. Berkeley Point's new parent is not required to provide financial support to Berkeley Point Financial LLC, and expects to continue to operate Berkeley Point Capital LLC as a standalone servicing platform.

Berkeley Point has 64 servicing and asset management employees and leverages outsourcing non-borrower facing servicing functions such as cash processes and escrow administration, with Midland Loan Services, a division of PNC Bank N.A., providing the bulk of payment processing.

As of Dec. 31, 2013, Berkeley Point's servicing portfolio consisted of 1,829 loans totaling $26.6 billion, with 97% of loans secured by multifamily properties by balance. Berkeley Point's largest servicing clients continue to be Fannie Mae (58%), followed by Freddie Mac (37%), and the company primary services 121 loans secured by multifamily properties totaling $3.2 billion in Freddie Mac CMBS transactions.

The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 14, 2014, and 'Rating Criteria for Structured Finance Servicers' dated Jan. 30, 2014, available on Fitch's web site www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Commercial Mortgage Servicer Rating Criteria' Feb. 14, 2014;

--'Rating Criteria for Structured Finance Servicers' Jan. 30, 2014.

Applicable Criteria and Related Research:

Rating Criteria for U.S. Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=842872

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Contacts

Fitch Ratings
Primary Analyst
James Bauer
Director
+1-212-908-0343
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Adam Fox
Senior Director
+1-212-908-0869
or
Committee Chairperson
Daniel Chambers
Managing Director
+1-212-908-0782
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
James Bauer
Director
+1-212-908-0343
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Adam Fox
Senior Director
+1-212-908-0869
or
Committee Chairperson
Daniel Chambers
Managing Director
+1-212-908-0782
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com