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Investing.com -- Fitch Ratings has upgraded Newmark’s commercial primary servicer rating to ’CPS2+’ from ’CPS2’ while affirming its commercial special servicer rating at ’CSS3+’, the rating agency announced Monday.
The upgrade reflects Newmark’s demonstrated proficiency in servicing commercial mortgage loans and stabilized operations following the integration of previously outsourced core servicing functions. Fitch cited improved senior management experience, recent technology upgrades, enhanced quality controls, regular internal audits, and improvements in loan setup, remittance disbursements, and insurance controls.
Fitch maintained Newmark’s special servicer rating, noting staffing stabilization after the 2023 integration of Spring11 and the company’s transition to a new special servicing asset management application in 2025. The rating also considers the limited special servicing experience with non-multifamily property types and REO asset management.
Both ratings reflect the financial strength of parent company Cantor Fitzgerald, which holds a ’BBB-’/Stable rating as of September 27, 2024.
Newmark completed its acquisition of Spring11 in February 2023, integrating approximately 2,000 non-cashiering loans totaling $98.7 billion and 16 specially serviced loans worth $645 million into its operations.
As of year-end 2024, Newmark employed 104 primary servicing staff and 27 special servicing employees, with locations in Pennsylvania and India. The company reported low domestic primary servicing turnover of 10% for the 12 months ending December 2024, down from 13% in the previous review period.
Newmark upgraded its core primary servicing application to Version20243.3.0.4 in October 2024 and replaced RealINSIGHT with Backshop in January 2025 for special servicing asset management functions.
As of December 31, 2024, Newmark was primary servicing 2,634 loans totaling $67.4 billion, representing an 8% increase by balance and 6% by loan count compared to the previous year. The company was also the named special servicer for 1,949 loans totaling $41.6 billion.
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