Servicing

12 Months Ended

Dec. 31, 2011

Servicing [Abstract]

Servicing

11. Servicing

The Company services commercial real estate loans for investors. The servicing portfolio totaled $27.2 billion, $25.1 billion, and $25.3 billion at December 31, 2011, 2010 and 2009, respectively.

In connection with its servicing activities, the Company holds funds in escrow for the benefit of mortgagors for hazard insurance, real estate taxes and other financing arrangements. At December 31, 2011, 2010 and 2009, the funds held in escrow totaled $126.6 million, $108.3 million and $94.7 million, respectively. These funds, and the offsetting obligations, are not presented in the Company’s financial statements as they do not represent assets and liabilities of the Company. Pursuant to the requirements of the various investors for which the Company services loans, the Company maintains bank accounts, holding escrow funds, which have balances in excess of the FDIC insurance limit. The fees earned on these escrow funds are reported in capital markets services revenue in the consolidated statements of income.