Wells Fargo Bank has various controls and procedures in place to handle the onslaught of modified CMBS loans returned from special servicing, Fitch Ratings said in a just-released report on the bank's servicing platform.
The rating agency's recent annual evaluation of the bank's CMBS servicing platform showed changes made by the bank to handle the rise in the number of loan modifications, specifically for larger balance loans.
Fitch has seen delays in booking modified loans and the lack of data of loans' modified terms across the sector. This lack of information affects buyers' ability to assess bond cash flows, the rating agency said.
The bank has addressed the increase in loan modifications by forming a specialized loan modification team that was able to be more proactive in the workout process via more communication and document review before a modification takes place.
The rating agency also mentioned that Wells Fargo's team comprises highly experienced asset managers, attorneys, loan document experts, and loan administrators.
Wells Fargo is also in the last phase on a technology integration plan that will merge the legacy Wells Fargo and Wachovia servicing platforms.