KeyBank Real Estate Capital has agreed to purchase certain commercial mortgage servicing rights from Bank of America.
According to KeyBank (KEY), Bank of America (BAC) finished the month of March with a total CMBS servicing portfolio of approximately $110.5 billion, which includes $14 billion in CMBS special servicing.
KeyBank is purchasing substantially all of the third-party CMBS and special servicing rights from Bank of America’s Global Mortgages & Securitized Products business.
Additionally, the bank has committed to a long-term sub-servicing agreement with Berkadia Commercial Mortgage, in which Berkadia will act as sub-servicer on nearly all the acquired securities. In the agreement, KeyBank also acquired Berkadia's CMBS special servicing business.
As a result, KeyBank’s commercial mortgage servicing portfolio will grow to approximately $205 billion, and it will be named special servicer on about $47 billion of CMBS, the company said.
"Acquiring these portfolios allows us to further leverage our highly-rated servicing platform," said Marty O'Connor, executive vice president and head of KeyBank Real Estate Capital Loan Servicing and Asset Management.
He added, "Our existing partnership with Berkadia will allow us to quickly integrate the Bank of America portfolios."