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.

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