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REO Services, Property Preservation Merger

National REO and property preservation service providers TruAssets LLC, Northsight Management LLC, are merging as of August 1, 2017. The new company will retain the Northsight Management name and will be led by TruAssets’ Steve Johnson as President and Northsight Management’s Josh Sarchet as CEO.

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TruAssets was founded by Johnson in 2012 and under Johnson’s leadership the company has grown quickly, coming to be recognized in the market for its focus on comprehensive customer service. Similarly, since being founded by Sarchet in 2009, Northsight Management has differentiated its services with an emphasis on the use of efficient technology. Both Johnson and Sarchet are confident that the combination will create a new brand which differentiates in numerous aspects of the business.

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“Steve and I bring complementary strengths and skill sets to this partnership,” said Sarchet.  “As a result, we believe this leadership dynamic will make us a formidable brand in an already competitive marketplace.”

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“The merger of the unique strengths of Northsight and TruAssets bring about a brand which offers the best of both worlds,” Johnson added. “The new entity offers a disruptive approach to property management and REO services, generating improved efficiency, surprising speed and incredible flexibility—all a win-win for us and our clients. At the same time, the new brand will maintain the traditional strengths expected of such a service provider: unfailing customer service; continuous improvement and integrity.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

The Look And Feel Of Technology Matters

Legacy technology is old and outdated, yet it permitted our industry. Technology has to have a great GUI these days to help our industry progress and good vendors realize this. For example, Exceleras, creator of the DispoSolutions Real Estate Owned (REO), ValueSolutions Collateral Valuation and ClearView Offer Management platforms, has released another regular software update on schedule. This time, software engineers and UX experts at Exceleras made application-wide updates to the look and feel of the company’s software. The company also added some functionality to further increase the power of custom tasks.

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“The new look and feel was a significant update for us, since so many pages were affected,” said Amy Bergseth, Chief Operating Officer for Exceleras. “In this first push of a multi-part update to further improve the interface of our software products, all of our system’s pages have been updated with a new look and feel. Changes include new color schemes, alignment changes, heading updates, and improvements to many other elements across the system. As changes have been cosmetic only, all users will find the location of all pages, links and information unchanged. So far, feedback has been good.”

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Bergseth said that eventually nearly every page of its existing software will be updated to meet the new design esthetic, which will improve the user’s experience. In addition, the new page design will be completely mobile ready. Because Exceleras develops, updates and maintains all of the software it offers to the market, it makes frequent updates and releases them to customers on a set schedule.

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Minor enhancements included in the most recent release include the addition of an option to adjust custom task re-occurrence at launch and a new menu to specify a category for  uploaded documents. The custom task functionality has become more important as new DispoSolutions users are coming from new parts of the business and managing more vendors than default servicers have in the past.
 
“Once primarily a tool used by servicers dealing with REO disposition, DispoSolutions has evolved into a powerful asset management system that has been embraced by  investors, community-based organizations, property managers and others who need to manage real estate portfolios,” said Exceleras President and CEO Michael Harris. “Because this evolution has tracked with our customer’s changing requirements, we found the need to update our design across the entire application. The pages look great, they’re easy to use and our customers love them. I’m very proud of our development team and the work they are doing.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

New Foreclosure And REO Auction Platform Launches

ServiceLink, a national provider of transaction services to the mortgage and finance industries and the largest provider of integrated services throughout the default cycle, announced today the launch of its newest offering, ServiceLink Auction.

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ServiceLink Auction will provide a results-driven, full service auction platform providing foreclosure and REO auction services that are fully integrated with ServiceLink products and technologies. It will be complemented by ServiceLink’s end-to-end default services and managed through ServiceLink’s Default Services division.

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ServiceLink Auction is powered by the recent acquisition of Hudson and Marshall completed by ServiceLink’s parent company, Fidelity National Financial (FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries.  Hudson and Marshall, a full service auction company, is one of the top auction providers in the country and has been in business since 1965.

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“With ServiceLink Auction, we are providing a service for our customers who have been looking for auction alternatives,” said Chris Azur, CEO of ServiceLink. “This service complements our default offerings and allows us to be the single service provider that the industry can count on to provide timely liquidity and optimal market value in the disposition of assets.”

This new platform, and the addition of CWCOT auction services, will also broaden ServiceLink’s HUD Suite of Services, with services tailored for the disposition of HUD delinquent portfolios including CWCOT title, post-sale HUD title, valuations and property preservation.

“As the industry leader in quality, compliance and an overarching commitment to customer excellence, ServiceLink is committed to consistently meeting the needs of our changing industry,” Azur said. “In partnership with Hudson and Marshall’s long-history of auction leadership and innovative technology platforms, we are certain that ServiceLink Auction will become the go-to resource for servicers.”

“The partnership with ServiceLink provides an even greater reach for Hudson & Marshall’s innovative disposition offerings,” said Trixy Castro, CEO of Hudson & Marshall. “It’s a great match and we are excited about the impact we can make together on the real estate industry.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

LRES Names New Chief Strategy Officer

LRES, a national residential and commercial mortgage services company providing valuations, REO asset management, HOA and technology solutions for the mortgage and real estate industry, announced Mark R. Johnson as its chief strategy officer to create and implement new strategic priorities and ensure core company initiatives, services and partnerships that reflect the company’s plans for growth.

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In this role, Johnson serves as a resource across the organization to increase broad cohesion of strategic plans while monitoring the competitive landscape and market conditions to identify opportunities, issues and risks in order to recommend actionable strategies.

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Johnson has more than 20 years of executive experience working for various Fortune 500 companies within the mortgage industry where he was charged with establishing annual strategic goals and managing budgets, forecasts and corporate reporting. Prior to LRES, he served as division president of Nationstar Mortgage Holdings. Previously he served as division president and chief operating officer of Lender Processing Services (now known as Black Knight Financial Services).

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“Mark’s proven experience of managing strategic execution and business unit performance metrics at distinguishable companies within our industry makes him the perfect candidate to help lead our strategic efforts. I look forward to working with Mark and the LRES executives to further collaborate with clients, address emerging opportunities and create change within the industry that allows for better accuracy and faster, more efficient delivery of information. LRES seeks to have an intimate understanding of client expectations and is focused on making it easy to do business,” said Roger Beane, CEO of LRES.

Johnson added “For a confluence of reasons, the valuation industry is not as efficient as it should, or could, be. By continuing to integrate data sciences, advanced workflows and mobile technology, we can change and improve this ecosystem and bring additional lift to clients as well as to the appraiser community and other vendors.”

Progress In Lending
The Place For Thought Leaders And Visionaries

Firm Analyzes 2016 And Looks Head To This Year

Summit Valuations, LLC, a full service valuation company, has released its February Residential Real Estate Market Overview based on data compiled in December 2016, the most current industry information available. This month’s report includes an analysis of 2016 performance from Summit’s Chief Valuation Officer, Mark Melikian, author of the report, as well as a projection for what we can expect in 2017.

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“Looking back at the performance of the US residential housing market in 2016, we see a lot of fluctuation in all six of the data categories that we tracked last year,” Melikian said in his report. “The most significant of these was the year to date increase (January – December) in median price. At 8.7%, this is the greatest home price appreciation we’ve seen on a national basis in the past three years. According to statistics from the National Association of Realtors, the annual increase in median price during 2014 was 5.7%, in 2015 it was 6.8%.”

>>Changes observed in the other metrics Melikian tracks in his monthly market report include:

>>The median sales price of an existing home was $213,700 in January. It peaked at $247,600 and ended the year higher at $232,200.

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>>The seasonally adjusted annual rate of homes sold began the year at 5,470,000, dropped to a low of 5,070,000 in February, then ended the year higher at a rate of 5,490,000 homes sold.

>>There was a four-month supply of existing homes for sale at the beginning of the year. It rose steadily to a high of 4.7 months in May and July, then dropped to its year end level of 3.6 months.

>>The pending home sales index in January was 105.4, it spiked to 115 in April and has ended the year higher at 109.

>>The unemployment rate started the year at 4.9%, rose to 5% in March, April, and September, then went down to 4.7% at the end of the year.

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>>Mortgage interest rates for a 30-year fixed rate averaged 3.87% in January, dropped to 3.44% in July and August, then increased to end the year at 4.2%.

“With housing starts remaining at a relatively low level and inventory levels at a year-long low, we can expect to see fewer transactions coupled with price appreciation into the first quarter of 2017,” Melikian said. “However, a significant move in mortgage interest rates will likely have an impact on the rate of sales and, longer-term could impact housing prices. These statistics will continue to be presented and analyzed in subsequent reports.”

On a regional level in December, the South had the highest number of existing home sales and the West had the highest median price. The Northeast, Midwest and West experienced declines in the number of seasonally adjusted existing home sales while the South remained level. The Northeast experienced the highest increase in median sales price at 2.8%, month over month.

Summit’s report provides data made public by the U.S. Government, the National Association of Realtors and Freddie Mac. Melikian has been appraising real estate since 1987 and has been active in nationwide valuation services since 2005. He has successfully led teams of analysts, developed valuation services to meet client needs and represented buyers and sellers in secondary market loan tie out meetings. Much of his recent experience has focused on forensic reviews of REO properties for Fannie Mae and Freddie Mac. Mr. Melikian holds a B.S. in Business Administration from San Diego State University.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Exceleras Provides One-Click Access To RE Auction Platform

Exceleras, creator of the DispoSolutions Real Estate Owned (REO), ValueSolutions Collateral Valuation and ClearView Offer Management platforms, announced today a new integration to the Bid4Assets online auction platform.  Now mortgage loan servicers, asset managers and investors that use DispoSolutions can also send properties to online auction and review the results seamlessly through one dashboard. Exceleras now considers Bid4Assets a preferred partner.

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“We continue to expand our solutions so that our clients can complete all of their work without leaving our applications,” said Exceleras President and CEO Michael Harris. “Efficiencies will continue to be important to our clients and you cannot be efficient if you are switching between applications. In addition, we are very impressed with Bid4Assets. The company has been selling real estate through online auctions longer than anyone and their technology is a good fit for our own.”

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Founded in 1999, Bid4Assets is a real estate online auction company that was created to serve government agencies at the federal, state and country levels. The firm was the first to perform online auctions for the US Marshals Service through the Department of Justice’s asset forfeiture program and is a leader in online tax foreclosure sales, having worked with over 75 counties across the country. Bid4Assets has sold over 100,000 properties of all types located in all fifty states and has over 675,000 registered bidders on its platform.

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“We were looking to expand our online real estate sales beyond the government sector and we really liked what we saw in Exceleras and its DispoSolutions offering,” said Jesse Loomis, President and CEO of Bid4Assets. “Exceleras has a great technology development team, which made integrating our systems fairly straightforward. Now, if a DispoSolutions client has not been successful moving a property through the traditional agent channel, they can send the property to auction with a single click and then get the results sent right back to DispoSolutions.”
Unlike other real estate auction firms, Bid4Assets does not require users to sign long term contracts. Auctions can be ordered for seven, 10 or 14 days. When the auction ends, there is no further commitment. Best of all DispoSolutions clients pay nothing for online auction services.  The new functionality is now available to DispoSolutions users.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

A Wave Of New Scrutiny

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The servicing market has changed significantly since the mortgage market imploded in the mid-2000s where we saw dramatic increases in loan defaults and foreclosure volumes. These heightened volumes impacted servicers and those companies handling default services, property preservation and REO disposition. While REO, short-sales and foreclosures have existed for quite some time, the sudden influx of foreclosures and rapidly expanding REO inventories lead to significant growth opportunities in a sector that traditionally flew under the radar.

Featured Sponsors:

 

 
REO and property preservation no longer fly under the radar. The increases in foreclosure volumes also ushered in a wave of new scrutiny from the OCC, DOJ and CFPB. Servicers were forced to deal with a flood of new rules and regulations on the federal, state, and local municipality levels which resulted in greater scrutiny, higher fines and higher costs to perform the required property preservation and REO services.

Even though we are emerging into a more stable REO market, asset management servicing firms are still being pressed to be able to dispose of REO properties in a timely and compliant manner.

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To improve results, stronger field execution is paramount. Servicers need to look for an REO asset manager with an experienced nationwide network of field service specialists who can act quickly and effectively to optimize the value and marketability of their REO properties. This involves much more than simply securing and maintaining the physical asset. The provider must be staffed with REO professionals – including vendor management specialists and broker specialist teams – capable of working closely with real estate professionals, vendors, title companies, law enforcement officials and attorneys to assure better outcomes at every phase of REO asset disposition.

A nationwide network that includes both brokers and field service professionals provides an up-close, informed view of each property, particularly if the asset manager also provides upstream pre-foreclosure services. This early and ongoing exposure arms the asset manager with the property-specific knowledge and experience needed to apply the most efficient, effective approach for each asset in the lender’s REO inventory.

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The key is rapid deployment of knowledgeable field resources on a neighborhood-by-neighborhood, property-by-property basis that can accurately and compliantly deliver proven results. Providers who can perform at this level are re-defining responsive REO service.

Servicers can expect a number of benefits as they strengthen relationships with asset management companies capable of working effectively across both REO and pre-foreclosure fronts:

>> Shorter Asset Resolution Cycles – Actively managed brokers move REO properties in less time than do unmanaged brokers. Working with asset managers offering direct local monitoring of individual brokers, lenders can expect to move properties in 90 days or less. Re-assigning unsold properties to new brokers – a costly and time-draining process – is rarely needed. In addition, when resources are focused at the neighborhood and individual property level, there is a greater incidence of properties selling above asking price.

>> Reduced Costs – Lower commissions and/or fees, economies of scale, and stronger asset control with fewer compliance problems deliver substantial cost-saving potential.

>> Smarter Property Marketing – Experience-based knowledge of each property and neighborhood leads to smarter valuations and more productive selling strategies. With in-depth REO expertise and proven strength on the ground, well-integrated asset management firms are able to create and apply the right marketing approach for each REO property.

>> Pre-Marketing – With in-depth, experience-based knowledge acquired before a property becomes part of the client’s REO portfolio, asset management companies offering both pre-foreclosure and post-foreclosure services are uniquely positioned to create and apply the right marketing approach for each REO property. This includes recommending auction or traditional sales methods, preparing detailed property/market analysis, as well as providing turn-key auction management or assigning a broker, as appropriate.

>> Marketing – REO asset managers who can offer comprehensive property marketing services are helping REO properties return maximum market value in minimum time. Qualified providers offering direct local execution and oversight can mount complete marketing campaigns, including detailed weekly marketing reports. Most importantly, they can and assume full responsibility for individual broker monitoring/evaluation, a distinct advantage over the arms-length relationships characteristic of many REO asset disposition programs.

>> Closing Services – Well-qualified REO asset management organizations can provide the people and expertise to coordinate and certify closing documents, organize and attend the closing, collect and distribute funds, and disseminate closing information. All in strict accordance with client, legal and regulatory requirements (title procurement, HUD-1 review and approval, escrow/closing coordination). These capabilities and more are well within the scope of forward-thinking REO asset management organizations prepared to excel in the new integrated service environment.

Effective marketing is critical to successful REO asset disposition. However, to be consistently effective, REO Marketing is best understood as part of the overall asset management process, not a substitute for it.

Disposition Alternatives

With today’s REO inventories, not all properties are suited for sale through traditional channels. Alternate strategies, particularly for low-value, high-risk properties, must be identified, assessed and implemented, as appropriate. REO asset management providers with strong field service networks can be highly effective partners in helping to leverage these opportunities, whether bulk transactions, transfers to development agencies or public auction. That said, property-by-property marketing continues to represent the most effective alternative for the majority of REO assets.

Property-by-property optimization of REO assets requires independent process management and localized control. What’s needed is an REO asset management partner, who knows the property and its pre-sale history, can plan and execute property preservation/enhancement services, understands municipal ordinances and code compliance issue, and can objectively assess, select and manage local brokers.

The Right REO Partner

With in-depth, experience-based knowledge acquired before a property becomes part of the client’s REO portfolio, asset management companies offering both pre-foreclosure and post-sale services are uniquely positioned to create and apply the right marketing approach for each REO property. This includes recommending auction or traditional sales methods and preparing a detailed property/market analysis, as well as providing turn-key auction management or assigning and managing a broker, as appropriate

The right REO service provider can deliver maximum REO results in minimum time. Qualified providers offering direct local execution and oversight can mount complete marketing campaigns and property-by-property follow up, including on going detailed progress reports. Most importantly, they can assume full responsibility for individual broker monitoring/evaluation, a distinct advantage over the arms-length broker relationships characteristic of many REO asset disposition programs. Successful REO asset disposition means knowing the property and tailoring a marketing strategy to match; and second, being able to apply independent, on-the-ground monitoring of the disposition process. Integrated REO asset management companies with strong field service networks are uniquely qualified on both fronts.

Comprehensive Solution, One single Source

The fact is, disposition of REO assets is a multi-front affair. Success means winning a series of small but important battles. It takes knowledge of the property and local market awareness to critically assess BPOs and the brokers who provide them. It takes experience and follow through to evaluate and monitor property-marketing activities. It takes strong field presence to assure the grass is cut, trash is removed, interiors aren’t gutted or vandalized, the HOA isn’t ready to enforce a lien, and fines for municipal code violations aren’t accruing. It takes people, skills and know-how to negotiate cash for keys.

Integrated REO asset management providers with proven pre-sale and post-sale capabilities are in the strongest position to help servicers address these and other needs critical to REO asset success.

Improving and streamlining default and REO processes will remain a primary focus of servicers and their field services partners as regulatory compliance becomes more urgent and complex. The field service provider’s first step in navigating these realities will be to become an even more capable and efficient resource – a true problem-solving partner who understands both broad market forces and the servicer’s particular needs and business circumstances.

About The Author

Nickie Badalamenti-Kalas
Nickie Badalamenti-Kalas is president at Five Brothers. She works directly with Five Brothers CEO, Joe Bada, to oversee the daily operations and long term strategic vision of Five Brothers. A dynamic entrepreneur, business leader, and skilled executive who brings leadership, insight, and new strategies that drive customer satisfaction, revenue growth, and profitability.

The New World of REO Disposition

website-pdf-download

The servicing market has changed significantly since the mortgage market imploded in the mid-2000s where we saw dramatic increases in loan defaults and foreclosure volumes. These heightened volumes impacted servicers and those companies handling default services, property preservation and REO disposition. While REO, short-sales and foreclosures have existed for quite some time, the sudden influx of foreclosures and rapidly expanding REO inventories lead to significant growth opportunities in a sector that traditionally flew under the radar.

Featured Sponsors:

 

 
REO and property preservation no longer fly under the radar. The increases in foreclosure volumes also ushered in a wave of new scrutiny from the OCC, DOJ and CFPB. Servicers were forced to deal with a flood of new rules and regulations on the federal, state, and local municipality levels which resulted in greater scrutiny, higher fines and higher costs to perform the required property preservation and REO services.

Featured Sponsors:

 
Even though we are emerging into a more stable REO market, asset management servicing firms are still being pressed to be able to dispose of REO properties in a timely and compliant manner.

To improve results, stronger field execution is paramount. Servicers need to look for an REO asset manager with an experienced nationwide network of field service specialists who can act quickly and effectively to optimize the value and marketability of their REO properties. This involves much more than simply securing and maintaining the physical asset. The provider must be staffed with REO professionals – including vendor management specialists and broker specialist teams – capable of working closely with real estate professionals, vendors, title companies, law enforcement officials and attorneys to assure better outcomes at every phase of REO asset disposition.

Featured Sponsors:

 
A nationwide network that includes both brokers and field service professionals provides an up-close, informed view of each property, particularly if the asset manager also provides upstream pre-foreclosure services. This early and ongoing exposure arms the asset manager with the property-specific knowledge and experience needed to apply the most efficient, effective approach for each asset in the lender’s REO inventory.

The key is rapid deployment of knowledgeable field resources on a neighborhood-by-neighborhood, property-by-property basis that can accurately and compliantly deliver proven results. Providers who can perform at this level are re-defining responsive REO service.

Servicers can expect a number of benefits as they strengthen relationships with asset management companies capable of working effectively across both REO and pre-foreclosure fronts:

>> Shorter Asset Resolution Cycles – Actively managed brokers move REO properties in less time than do unmanaged brokers. Working with asset managers offering direct local monitoring of individual brokers, lenders can expect to move properties in 90 days or less. Re-assigning unsold properties to new brokers – a costly and time-draining process – is rarely needed. In addition, when resources are focused at the neighborhood and individual property level, there is a greater incidence of properties selling above asking price.

>> Reduced Costs – Lower commissions and/or fees, economies of scale, and stronger asset control with fewer compliance problems deliver substantial cost-saving potential.

>> Smarter Property Marketing – Experience-based knowledge of each property and neighborhood leads to smarter valuations and more productive selling strategies. With in-depth REO expertise and proven strength on the ground, well-integrated asset management firms are able to create and apply the right marketing approach for each REO property.

>> Pre-Marketing – With in-depth, experience-based knowledge acquired before a property becomes part of the client’s REO portfolio, asset management companies offering both pre-foreclosure and post-foreclosure services are uniquely positioned to create and apply the right marketing approach for each REO property. This includes recommending auction or traditional sales methods, preparing detailed property/market analysis, as well as providing turn-key auction management or assigning a broker, as appropriate.

>> Marketing – REO asset managers who can offer comprehensive property marketing services are helping REO properties return maximum market value in minimum time. Qualified providers offering direct local execution and oversight can mount complete marketing campaigns, including detailed weekly marketing reports. Most importantly, they can and assume full responsibility for individual broker monitoring/evaluation, a distinct advantage over the arms-length relationships characteristic of many REO asset disposition programs.

>> Closing Services – Well-qualified REO asset management organizations can provide the people and expertise to coordinate and certify closing documents, organize and attend the closing, collect and distribute funds, and disseminate closing information. All in strict accordance with client, legal and regulatory requirements (title procurement, HUD-1 review and approval, escrow/closing coordination). These capabilities and more are well within the scope of forward-thinking REO asset management organizations prepared to excel in the new integrated service environment.

Effective marketing is critical to successful REO asset disposition. However, to be consistently effective, REO Marketing is best understood as part of the overall asset management process, not a substitute for it.

Disposition Alternatives

With today’s REO inventories, not all properties are suited for sale through traditional channels. Alternate strategies, particularly for low-value, high-risk properties, must be identified, assessed and implemented, as appropriate. REO asset management providers with strong field service networks can be highly effective partners in helping to leverage these opportunities, whether bulk transactions, transfers to development agencies or public auction. That said, property-by-property marketing continues to represent the most effective alternative for the majority of REO assets.

Property-by-property optimization of REO assets requires independent process management and localized control. What’s needed is an REO asset management partner, who knows the property and its pre-sale history, can plan and execute property preservation/enhancement services, understands municipal ordinances and code compliance issue, and can objectively assess, select and manage local brokers.

The Right REO Partner

With in-depth, experience-based knowledge acquired before a property becomes part of the client’s REO portfolio, asset management companies offering both pre-foreclosure and post-sale services are uniquely positioned to create and apply the right marketing approach for each REO property. This includes recommending auction or traditional sales methods and preparing a detailed property/market analysis, as well as providing turn-key auction management or assigning and managing a broker, as appropriate

The right REO service provider can deliver maximum REO results in minimum time. Qualified providers offering direct local execution and oversight can mount complete marketing campaigns and property-by-property follow up, including on going detailed progress reports. Most importantly, they can assume full responsibility for individual broker monitoring/evaluation, a distinct advantage over the arms-length broker relationships characteristic of many REO asset disposition programs. Successful REO asset disposition means knowing the property and tailoring a marketing strategy to match; and second, being able to apply independent, on-the-ground monitoring of the disposition process. Integrated REO asset management companies with strong field service networks are uniquely qualified on both fronts.

Comprehensive Solution, One single Source

The fact is, disposition of REO assets is a multi-front affair. Success means winning a series of small but important battles. It takes knowledge of the property and local market awareness to critically assess BPOs and the brokers who provide them. It takes experience and follow through to evaluate and monitor property-marketing activities. It takes strong field presence to assure the grass is cut, trash is removed, interiors aren’t gutted or vandalized, the HOA isn’t ready to enforce a lien, and fines for municipal code violations aren’t accruing. It takes people, skills and know-how to negotiate cash for keys.

Integrated REO asset management providers with proven pre-sale and post-sale capabilities are in the strongest position to help servicers address these and other needs critical to REO asset success.

Improving and streamlining default and REO processes will remain a primary focus of servicers and their field services partners as regulatory compliance becomes more urgent and complex. The field service provider’s first step in navigating these realities will be to become an even more capable and efficient resource – a true problem-solving partner who understands both broad market forces and the servicer’s particular needs and business circumstances.

About The Author

Nickie Badalamenti-Kalas
Nickie Badalamenti-Kalas is president at Five Brothers. She works directly with Five Brothers CEO, Joe Bada, to oversee the daily operations and long term strategic vision of Five Brothers. A dynamic entrepreneur, business leader, and skilled executive who brings leadership, insight, and new strategies that drive customer satisfaction, revenue growth, and profitability.

Default Services Provider Gets New CEO

Exceleras, creators of the DispoSolutions REO management platform and the ValueSolutions enterprise collateral valuation management technology, announced today that industry veteran Michael Harris has joined the firm and will serve as president and Chief Executive Officer. Harris has been consulting with the firm for several months, developing strategic direction and working on a new product set and a general rebrand for the successful software development company.

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Exceleras, formerly Default Servicing Technologies, became a leading firm during the foreclosure crisis, when lenders, servicers and asset management firms sought out software to help them manage the property valuation and disposition processes. Today, Harris plans to take the company to the next step in its evolution.

“Today’s primary market participants, lenders and servicers, now have access to solid software that meets their most pressing needs and we are proud to be a solution provider for that sector,” Harris said. “It’s the secondary market that also needs our support today. Our ability to provide customized software through a consultative and collaborative process is making us a good partner for capital markets firms that can benefit from access to a boutique, high powered technology environment.”

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Harris previously owned his own quality assurance consulting firm Jennick, LLC, where he provided a range of services designed to help mortgage servicers establish and maintain best practices. Before that he served as President of Carrington Property Services, President at Stewart Asset Recovery, and Vice President in charge of Operation for First American REO Servicing.

“Our primary market segment going forward will be investors who lack the powerful technologies required for success in today’s real estate market,” Harris said. “There are firms in our industry today who would benefit greatly by having a single solution like Exceleras which can provide end to end technology from portfolio acquisition to disposition. We can show them software solutions that will change their worlds.”

Progress In Lending
The Place For Thought Leaders And Visionaries

LRES Hires A CTO

LRES, a nation REO and appraisal management company offering property valuations, asset management, HOA and technology solutions for the mortgage industry, has hired Mike Rasooli as its chief technology officer (CTO).

In this role, Rasooli manages LRES’ technical priorities and operational vision; drives growth by delivering applications, tools and services; and leads all aspects of the company’s strategic and tactical technological development.

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Rasooli has more than 27 years of experience in management, software development and IT experience with an extensive background in enterprise and database management systems, B2C and B2B E-commerce, customer relationship management, document management and mortgage technologies. Prior to joining LRES, Rasooli has served as the chief technology officer for Edge Mortgage Advisory Company and PowerSoft 360. He has also served as CEO/CTO at LogixInfo. Prior to that he has also served as a director of Project Management at Pathways, a senior software engineer at Corbis Images and Timeline and senior project manager at Microsoft.

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“Mike is no stranger to technological innovation, and we welcome his specialized expertise to add further enhancements and value to our proprietary appraisal order management technology platform, LRES DirectConnect™, and our vendor portal, as well as provide guidance and strategic direction toward future technological developments,” said Roger Beane, CEO of LRES.

Rasooli also holds a bachelor’s degree in science from the University of Darmstadt in Germany.

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