Commercial real estate loan servicing costs may rise from "unprecedented" employee turnover at mortgage servicers following the decline of the pandemic, Fitch Ratings says.
However the massive departure of workers so far has not led to any noted declines in servicing proficiency among Fitch-rated primary, master and special servicers. Nor does Fitch expect any ratings implications from experienced service staffers leaving and instead views turnover on a trend-over-time basis. For instance, increased labor costs, the largest portion of servicers' operating budgets, limit the capital available to invest in new servicing technology initiatives.
Employee training is becoming more important at the CRE mortgage servicers as turnover will bring down the average tenure and industry experience of employees as servicers hire to replace those who have left.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
