home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

CRIIMI MAE Services Completes Sale of Master and Primary Servicing Contracts

ROCKVILLE, MD (March 13, 2002) -- CRIIMI MAE Inc. (CMM) announced today that its commercial mortgage servicing subsidiary, CRIIMI MAE Services Limited Partnership (CRIIMI MAE Services), sold nine master and primary servicing contracts in February to an undisclosed buyer.

CRIIMI MAE Services said it sold the servicing rights and received $11.3 million in cash, which includes reimbursement for advances. CRIIMI MAE Services expects to record a gain on this sale of approximately $4.3 million in the second quarter of 2002. Subject to adjustment for certain post-closing contingencies, CRIIMI MAE Services may receive up to an additional $0.9 million from the sale in the third quarter of 2002.

The contracts sold by CRIIMI MAE Services provide for master and primary servicing of commercial mortgage-backed securities (CMBS) with a total unpaid principal balance of $2.1 billion. The Company had first announced its intent to sell the servicing contracts in December 2001.

After the sale of the CMBS contracts, CRIIMI MAE Services continues to be the designated special servicer for $18.4 billion of commercial mortgage loans underlying the Company's CMBS portfolio. CRIIMI MAE Services also continues to provide master and primary servicing on an insured mortgage securities portfolio of approximately $166 million and primary servicing on mezzanine loans totaling approximately $6.1 million.

Commenting on the sale, senior vice president of servicing Brian L. Hanson said, "We are pleased to announce the completion of this transaction. We decided to sell the nine contracts late last year because they were unprofitable, given the relatively small volume of master and primary CMBS servicing that we were performing at CRIIMI MAE Services. This part of the commercial mortgage servicing business is volume driven: significant economies of scale are needed to enhance profitability. The Company was not willing to commit the additional resources required to achieve volume growth."

In conjunction with the decision to sell master and primary servicing contracts for CMBS, CRIIMI MAE Services reduced its master and primary servicing staff by 34 employees, or 32 percent of its total mortgage servicing workforce. To account for employee severance costs, noncancellable lease costs, and other related costs, CRIIMI MAE recorded a restructuring charge in the fourth quarter of 2001 of approximately $438,000. In addition, the Company transferred six employees from the master and primary servicing departments to the special servicing department.

For further information, shareholders and securities brokers should contact Shareholder Services at 301-816-2300, e-mail [email protected], and news media contact James Pastore, Pastore Communications Group LLC, at 202-546-6451 or [email protected]

Note: Forward-looking statements contained in this release involve a variety of risks and uncertainties. Actual results could differ materially from those anticipated in forward-looking statements. These risks and uncertainties include the trends in the CMBS market; competitive pressures; the effect of future losses on the Company's need for liquidity; general economic conditions, restrictive covenants and other restrictions under the operative documents evidencing the Company's outstanding secured borrowings (including a repurchase agreement); results of operations, leverage, financial condition, business prospects and restrictions on business activities under documents evidencing the Company's secured borrowings, as well as the risks and uncertainties that are set forth from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2000 and in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2001.


hosted by USANow.net

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders

Copyright © 2002 MortgageDaily.com