Truist Financial (TFC) is preparing to expand its presence in the $1.8 trillion commercial mortgage-backed securities (CMBS) servicing market, with its Grandbridge Real Estate Capital unit planning to bid for master-servicer roles in upcoming transactions, Bloomberg reported Tuesday.
Master servicers oversee loan payments, maintain records and advance funds when property cash flows are disrupted, making the business capital-intensive and creating high barriers to entry. Grandbridge plans to leverage Truist's nearly $550 billion balance sheet to compete in the market, the report said.
The move is part of Truist's broader growth strategy following the 2019 merger of BB&T and SunTrust. Grandbridge currently focuses primarily on primary servicing but aims to become a major player in master servicing, Marty Allen, head of capital markets at the unit told the news agency.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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