DBRS Morningstar Confirms CMLS Financial Ltd.’s Primary Residential Mortgage Servicing at Good and Special Residential Mortgage Servicing at Adequate

DBRS Limited (DBRS Morningstar) confirmed CMLS Financial Ltd.’s (CMLS) Primary Residential Mortgage Servicing at Good and Special Residential Mortgage Servicing at Adequate. The evaluations are based on a review of CMLS in the following areas: company and management; asset administration, reporting, and customer service; default and loss management; technology; financial condition; controls and compliance; and outsourcing and subservicing arrangements. The evaluations may be taken as evidence of the satisfaction of DBRS Morningstar’s expectations for CMLS to act as a third-party subservicer for residential mortgage-backed securities and be relied on by third parties as such.

CMLS is a privately owned Canadian-based originator, underwriter, and servicer of residential and commercial mortgages with $35.1 billion ($11.8 billion residential and $23.3 billion commercial) in mortgages under administration as of December 31, 2022. Among the strengths of CMLS are its experienced senior management; mortgage insurers’ comfort with CMLS’ servicing capacity, where 79% of its serviced portfolio is insured and no claim has ever been rejected by mortgage insurers; and its strong control environment and audit program.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology applicable to the evaluation is Operational Risk Assessments for Canadian Structured Finance (April 4, 2023; https://www.dbrsmorningstar.com/research/412270).

Other methodologies referenced in this transaction are listed at the end of this press release.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The evaluation was initiated at the request of the evaluated entity. The evaluated entity or its related entities did participate in the evaluation process for this evaluation action. DBRS Morningstar had access to the accounts, management and other relevant internal documents of the evaluated entity or its related entities in connection with this evaluation action.
This is a solicited evaluation.

DBRS Morningstar will publish a full report shortly that will provide additional analytical detail on these evaluations. If you are interested in receiving this report, contact us at [email protected].

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The methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].