Fitch Ratings has affirmed Community Loan Servicing, LLC's (CLS, f/k/a Bayview Loan Servicing, LLC) U.S. small balance commercial (SBC) servicer ratings.

U.S. Small Balance Commercial Primary Servicer Rating at 'SBPS2+';

U.S. Small Balance Commercial Special Servicer Rating at 'SBSS2+'.

The Rating Outlook for both ratings is revised to Negative from Stable.

RATING ACTIONS

Entity / Debt

Rating

Prior

Community Loan Servicing, LLC CMBS

Small Balance Commercial Primary Servicer

SBPS2+

Affirmed

SBPS2+

Small Balance Commercial Special Servicer

SBSS2+

Affirmed

SBSS2+

Page

of 1

VIEW ADDITIONAL RATING DETAILS

Key Rating Drivers

The rating affirmations reflect CLS's effective servicing of primary and special SBC mortgage loans, effective systems and technology, strategic growth objectives, and experienced senior management team and staff. The ratings also take into consideration CLS's organizational realignment and the outsourcing of certain functions to a third-party servicer.

The Outlook revision to Negative was based on CLS experiencing two material instances of non-compliance (MINC) with its 2023 Regulation AB (Reg AB) and one instance of MINC in its Uniform Single Attestation Program (USAP). CLS indicated that it has implemented various proactive measures and has remediated the issues. In addition, Fitch will continue monitoring CLS's effectiveness in building out the requisite controls to adequately manage the current transaction servicing arrangements it maintains with Mr. Cooper to perform some remittance functions.

As of June 1, 2022, CLS sold and transferred its residential mortgage loan servicing platform to Mr. Cooper. The sale involved the transfer of over 140,000 residential loans with approximately 6,000 commercial loans remaining on CLS's platform. CLS continues to act as primary and special servicer of small and large balance commercial loans, including mezzanine and CPACE transactions. The servicer indicated that it intends to increase its total servicing portfolio volume through both the commercial loan origination and acquisition channels. As part of the transition, CLS retained the entire commercial Asset Management team, who were previously assigned to servicing its commercial small balance and residential portfolios.

CLS expects to continue to grow strategically through (i) servicing of loans acquired by Opportunity Funds managed by a CLS affiliate, Bayview Fund Management, (ii) servicing of loans originated by its affiliates in the small balance commercial, bridge/transition, Debt Service Coverage Ratio (DSCR) and construction business units, and (iii) pursuit of third party servicing business for both primary and special small balance commercial servicing opportunities.

The servicer evidences a highly developed core senior management team. CLS continues to develop its bench strength and expanding cross-training among the existing commercial servicing staff. For this review period, CLS experienced 2.90% turnover it its senior management team and 17.39% in its general staffing. The servicer demonstrates an effective recruitment and retention program.

CLS is the servicing arm of Bayview Asset Management and provides full-service small balance commercial, and commercial loan special servicing from its main location in Coral Gables and Ft. Lauderdale in FL. Fitch does not publicly rate the credit and financial strength of CLS or its parent. However, Fitch's financial institutions group reviewed CLS's financial statements to provide an internal assessment, as a company's financial condition is a component of Fitch's servicer rating analysis.

As of March 31, 2024, CLS serviced 1,794 SBC mortgage-backed securities (MBS) loans totaling approximately $559 million and 4,403 other SBC loans totaling approximately $1.21 billion, for a total portfolio balance of 6,197 loans with unpaid principal balance of $1.77 billion.

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.

APPLICABLE CRITERIA

Criteria for Rating Loan Servicers (pub. 15 Dec 2022)

Criteria for Rating North American Commercial Mortgage Servicers (pub. 15 Dec 2022)

ADDITIONAL DISCLOSURES

Solicitation Status

Endorsement Policy

ENDORSEMENT STATUS

Community Loan Servicing, LLC 	-

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Solicitation Status

The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below.

Endorsement Policy

Fitch's international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch's approach to endorsement in the EU and the UK can be found on Fitch's Regulatory Affairs page on Fitch's website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.

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