2025 has seen Trimont solidify its leadership position as the nation’s largest servicer of securitized commercial real estate debt through its acquisition of Wells Fargo’s third-party non-agency commercial mortgage servicing (CMS) business. This year has also seen increased activity in the company’s distress-related business lines, and company president Mitchell Hunter, who has led Trimont’s non-performing/special servicing team in the past, expects this year-over-year growth trend to continue. Connect CRE sounded out Mitchell on the integration of the Wells Fargo CMS platform and the macroeconomic outlook for finance.
Q: Trimont recently completed its acquisition of Wells Fargo’s third-party non-agency CMS business. How does the acquisition enhance Trimont’s existing platform?
A: Trimont’s recent acquisition complements our existing platform in several key ways:
- Expanded scale and resources: By welcoming approximately 350 new colleagues in the U.S. and 350 in India, we have strengthened our global team and expanded our operational footprint. This allows us to deliver around-the-clock coverage for our clients and support a broader range of asset classes and financial instruments.
- Enhanced operational efficiencies: The increased size brings new operational and financial efficiencies, allowing us to leverage economies of scale and further streamline our processes. This enhanced capacity positions us to better serve our clients’ evolving needs in a dynamic market environment.
- Technology and innovation advancement: The acquisition includes eight proprietary software systems that integrate seamlessly with our ongoing technology investments at Trimont. These platforms accelerate our innovation agenda, enabling us to deliver more advanced, data-driven solutions to our clients and maintain a leadership position in servicing both public and private credit offerings. This integration has allowed us the opportunity to refine and expand the capabilities of our internal AI large language model (Tribot).
- Greater client value: With our expanded resources, broader global reach, and enhanced technology suite, Trimont is uniquely positioned to deliver best-in-class service for our clients, regardless of transaction complexity or structure.
Q: Within the overall Trimont platform, where do the distress-related business lines (e.g., special servicing) rank as far as year-over-year growth in volume is concerned?
A: Our distress-related business lines have shown steady year-over-year growth in volume over recent years. This positive trajectory is expected to persist through the remainder of 2025 and into 2026, largely driven by a substantial wave of loan maturities set to come due in the next 18 months. As borrowers face refinancing challenges and potential defaults, the demand for special servicing and related expertise is anticipated to rise accordingly. Additionally, escalating costs and ongoing uncertainty in global markets are likely to exert further pressure on commercial real estate performance, reinforcing the increased demand for robust special servicing expertise as part of business lines..
Q: As far as distressed real estate is concerned, in what property type(s) have you and your team seen the greatest degree of movement, whether positive or negative, in the past six months?
A: The hospitality sector continues to face significant challenges, particularly among assets in special servicing, where low average daily rates and occupancy persist. Dispositions are complicated by the prevalence of franchised management structures, as many prospective buyers prefer independent operations. Ownership remains reluctant to invest limited liquidity into long-deferred property improvement plans, given the uncertain return on such expenditures. Broader economic and political uncertainty is dampening travel and tourism demand, while ongoing tariff negotiations disrupt supply chains. Cost pressures have intensified, with increases in operating expenses, insurance premiums, and labor costs—including benefits—further compressing margins. The uncertain outlook in the airline industry, which closely correlates with hospitality performance, adds to sector-wide concerns.
In the regional mall segment, the most recent resolution resulted in a full recovery of principal and default interest—a rare and notable achievement in this asset class.
For multifamily agency loans, there has been an increase in new cases, driven primarily by non-monetary issues such as property condition and inadequate insurance coverage, rather than by payment defaults. In contrast, the multifamily CMBS sector is experiencing more monetary and maturity defaults, often exacerbated by poor property conditions.
Q: Has the current economic uncertainty, domestically and globally, begun to affect commercial property fundamentals and the lending environment?
A: The short answer is yes, the current economic uncertaintyhas started to impact commercial property fundamentals and the lending environment. Key effects include:
- Commercial property fundamentals: Persistent market volatility has placed downward pressure on property values and increased operating costs. Many markets are experiencing higher vacancy rates, slower rent growth, and more cautious tenant demand, particularly in sectors like office and retail. Financial stress continues to impact the consumer, who may reduce spending, which may create challenges for businesses and commercial real estate. Multifamily renters continue to remain burdened by unaffordable rents, and the potential for increased tariffs is creating a slowdown in the industrial marketplace.
- Lending environment: Lenders are responding to greater uncertainty by tightening underwriting standards, increasing loan pricing, and reducing leverage levels. There is a notable reduction in liquidity, with many lenders adopting a more selective approach to new originations. This has led to challenges for borrowers seeking to refinance or secure new loans, especially for assets in transitional or underperforming segments.
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