Score one for the little, er, midsize guy.
A real estate arm of KeyCorp has agreed to purchase more than $100 billion of servicing rights on commercial and multifamily loans from Bank of America, Keycorp said in a press release Thursday.
KeyBank Real Estate Capital, the commercial real estate business unit of KeyCorp, will purchase substantially all of the third-party commercial mortgage servicing business from B of A's global mortgages and securitized products business. The portfolio includes servicing for a variety of private investors, who must OK the deal along with regulators and ratings agencies, the release said.The deal, expected to be completed before June 30, would make KeyCorp the third-largest named servicer of such loans in the U.S. with a servicing portfolio of $205 billion, the release said.
"This acquisition helps to ensure that Key is well-positioned for growth, and represents our willingness to invest in our corporate bank business," Beth Mooney, the chairman and chief executive of Cleveland-based KeyCorp, said in the release.
The price was undisclosed.
KeyCorp said Berkadia Commercial Mortgage would act as its sub-servicer on the primary servicing acquired from Bank of America and that KeyCorp has agreed to acquire Berkadia's CMBS special servicing business.
B of A's total commercial mortgage servicing portfolio was valued at $110.5 billion at March 31, the release said. The deal includes a CMBS special servicing portfolio of about $14 billion, the release said.
The deal would not affect B of A's commercial real estate banking business, the release said.
