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 May 11, 2021, we affirmed the ranking (please see "Freddie Mac ABOVE AVERAGE Commercial Mortgage Loan Master Servicer Ranking Affirmed; Outlook Stable," published May 11, 2021). 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; Continued low levels of multifamily mortgage loan delinquency rates, albeit supported by an extensive forbearance program during 2020; 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

...+ The "serviced by others" portfolio increased to $102 billion as of Dec. 31, 2020, from $82 billion as of Dec. 31, 2018, and the traditional K-Deal (i.e., capital market execution) portfolio balance increased to approximately $295 billion as of Dec. 31, 2020, from nearly $235 billion as of Dec. 31, 2018. + As of Dec. 31, 2020, AMO was the appointed master servicer on securitized transactions aggregating $42.3 billion in unpaid principal balance (UPB), including 40 nontraditional K-Deals for a total of $10.7 billion in UPB, 81 small-balance deals for a total of $23.9 billion in UPB, 12 Q-Deals for a total UPB of $3.3 billion, and 10 "other" transactions for a total UPB of $4.4 billion. + In November 2020, the CEO tendered his resignation and the head of investments and capital markets was appointed interim president, while also maintaining his existing duties. + The CEO departed the company in January 2021 and a board member was appointed interim CEO in March until a permanent replacement...

Full Report