Fitch Assigns Initial CMBS Special Servicer Rating to Freddie Mac

  Fitch Assigns Initial CMBS Special Servicer Rating to Freddie Mac

Business Wire

NEW YORK -- November 13, 2012

Fitch Ratings assigns Freddie Mac an initial commercial mortgage-backed
securities (CMBS) special servicer rating of 'CSS2-'. The rating reflects the
ability of the multifamily division of Freddie Mac to work out commercial
mortgage loans, secured by apartment buildings with five or more units,
acquired by Freddie Mac from its network of seller/servicers. The rating does
not address the single family residential aspect of Freddie Mac's business.

Freddie Mac's commercial servicer special servicer rating reflects Fitch's
assessment of Freddie Mac's management team, asset management capabilities,
technology, financial strength, and knowledge of the multifamily lending
environment combined with the support of its seller/servicer network. Although
Freddie Mac does not currently perform special servicing functions for
securitized mortgages backed by newly originated loans, the asset management
and operations group has extensive multifamily workout experience across the
United States.

As of Sept. 30, 2012, Freddie Mac was special servicer for more than 8,800
loans totaling $94.4 billion secured by multifamily properties that are held
by Freddie Mac. As of the same time, the asset management and operations group
of Freddie Mac was actively working out in excess of 100 loans and several
real estate owned (REO) assets totaling approximately $1.5 billion. The group
also successfully resolved more than $1.0 billion of loan defaults in 2011.
The loans, which were collateralized by properties throughout the U.S., were
resolved through modifications, foreclosure and liquidations, and forbearances
with an average loss of below that of typical Fitch rated CMBS special
servicers.

The servicer rating is based on the methodology described in Fitch's reports
'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and
'Global Rating Criteria for Structured Finance Servicers' dated Aug. 16, 2010,
available on Fitch's web site 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Commercial Mortgage Servicer Rating Criteria' Feb. 18, 2011;

--'Global Rating Criteria for Structured Finance Servicers' Aug. 16, 2010.

Applicable Criteria and Related Research:

Global Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

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Contact:

Fitch Ratings
Primary Analyst:
Adam Fox, +1-212-908-0869
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
James Bauer, +1-212-908-0782
Associate Director
or
Committee Chairperson:
Daniel Chambers, +1-212-908-0343
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com
 
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