Fitch Ratings – New York – 20 Dec 2021: Fitch Ratings has affirmed ColumbiaNational Real Estate Finance, LLC’s (CNREF) primary servicer rating at ‘CPS2’.

KEY RATING DRIVERS

The affirmation of the rating reflects CNREF’s servicing group’s integral role in the broader company and strong sponsorship support with continued investment in technology, highly experienced and stable management and staff, and appropriate internal controls including annual internal audits. The rating also reflects key person risk given the small size of the group comprised of eight employees, some manual functions, and proficiency servicing more complex, highly structured loans compared with highly rated peers.

CNREF acts as a correspondent lender and servicer mainly for life insurance companies as well as U.S. Department of Housing and Urban Development (HUD) and CMBS lenders. As of Sept. 30, 2021, life company loans made up 88% of the total servicing portfolio by loan count, HUD loans made up 8% and CMBS loans and loans made up 2%. CNREF, through predecessor companies, has extensive experience as a primary servicer, having serviced commercial mortgage loans since 1939. CNREF sells the loans it originates and retains servicing for approximately 72% of originated loans.