CRIIMI MAE Prepares for Change

ROCKVILLE, MD-Mortgage lender CRIIMI MAE, Inc. has planned big changes with the announcement that it will sell off remaining master and primary servicing contracts related to commercial mortgage-backed securities. The company also plans to decrease overhead by reducing its staff in the special servicing department to 71 from the current total of 105.

In a statement announcing the news, company Chairman William B. Dockser explains, “a top priority for the Company today is loan management and special servicing defaulted loans underlying our CMBS portfolio.” He adds, “our special servicing department should be even stronger after this action, as we increase our focus on managing the risk of owning CMBS through loan surveillance and managing defaults.” The action comes as a response to the current economic recession, as well as increased demand in specially serviced loans. “Master and primary servicing are less important to our overall business and are not profitable operations based on present volume,” Dockser explains.