The Competition Heats Up

*The Competition Heats Up*
**Asset Managers Face Off**

loss-money***As the U.S. economy continues to recover and historic default and foreclosure rates normalize, firms providing asset management and home preservation services to the mortgage servicing industry are entering a more competitive landscape. One key to success for these firms is to offer a more complete solution, according to Derrick A. Logan, principal consultant with Distressed Asset Logistics (DAL), a firm that works with banks, credit unions, mortgage banks and asset management firms to streamline default services and REO activities within the enterprise.

****“Servicers are seeing fewer problem loans in this environment and they are now eager for some simplicity,” Logan said. “Servicers, like the borrowers they serve, want a single point of contact to meet their asset management and home preservation needs. Asset management firms that can offer this in a manner that provides a complete end-to-end service and largely through their own crews are bound to be more attractive to servicers intent on cutting costs and streamlining their outsourcing operations.”

****While most of the larger players in the space have extended national networks to round out their offerings, firms that offer more of these services through in-house crews may have a tactical and competitive advantage, according to Logan. Asset management firms can still use a tactical mix of subcontractors and internal crews, but internal systems must be perfected such that the firm provides a simple interface with the servicer. As the competition heats up between asset management firms ahead of what could be a shakeout, those firms that master the Cradle-to-Grave offering will be the most likely winners.