Servicer Evaluation: Freddie Mac

S&P Global Ratings' ranking on Freddie Mac Multifamily Asset Management and Operations (AMO) is ABOVE AVERAGE as a commercial mortgage loan master servicer. On Aug. 2, 2019, we affirmed the ranking (please see "Freddie Mac ABOVE AVERAGE Commercial Mortgage Loan Master Ranking Affirmed; Outlook Is Stable," published Aug. 2, 2019). The outlook for the ranking is stable. Our ranking reflects AMO's: Experienced and tenured senior management team; Effective and comprehensive employee training and development program; Historically low levels of multifamily mortgage loan delinquency rates; Integrated and effective technology systems; Comprehensive subservicer (Seller/Servicer) oversight program; Sound audit and control environment, albeit with a longer-than-average internal audit cycle compared with those of most servicers; Homogenous multifamily property portfolio, with limited exposure to

...+ As of Dec. 31, 2018, AMO was the appointed master servicer on 33 nontraditional K-Deals for a total of $10.4 billion in unpaid principal balance (UPB), 57 small-balance securitized transactions for a total of $16.5 billion in UPB, six Q-Deals (for a total UPB of $1.9 billion, and eight "other" transactions for a total UPB of $4.4 billion. + The executive vice president (EVP) of multifamily was promoted to the president of Freddie Mac in September 2018, and was subsequently promoted to CEO of the company in July 2019, following the retirement of the former CEO. + The senior vice president of underwriting was promoted to EVP of multifamily effective in November 2018. + The senior director of special servicing was promoted to vice president (VP) of asset management in April 2018, overseeing special servicing, REO, surveillance, asset performance and compliance, and insurance. + The former VP of servicer and client management now heads the strategic transformation efforts and reports to the...

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