Monday, June 27, 2011

Carrington Property Services Enhances Residential Asset Management Operations

Carrington Property Services, LLC (CPS), Santa Ana, Calif., a national residential asset management companies, has transformed its operations to increase its capacity and capabilities in residential asset management services to benefit lenders and servicers, according to the company. The company has now realigned its operations into three primary divisions – Rental, REO Administration, and Centralized Services.

The larger restructured organization utilizes both the human and technological capabilities of CPS’ existing platform while leveraging the abilities of Carrington’s integrated family of companies.

“The new structure brings enhanced capabilities in a broad range of solutions for helping our clients manage their residential property portfolios," noted Steve Ozonian, chief real estate officer of Carrington Holding Company. "Since each property has its own individual characteristics, our clients have expressed the desire to use multiple strategies simultaneously – ranging from rental to REO and short sale management – with a single point of contact for vendor management. The reorganization makes that happen with ease and transparency."

The three new business divisions include:

· Rental - The Rental Division provides unique programs that offer alternative asset management paths. Current programs manage properties in 34 states in compliance with the Protecting Tenants in Foreclosure Act, investor profitability guidelines, tenant rights and state-specific requirements. Carrington’s proprietary systems and technology ensure consistency and quality control for managing all facets of property management, including the tracking of properties, tenants, property managers, rents, security deposits and vendors, sophisticated business and trend analysis, as well as financial results and other customized reporting.

· REO Administration - The REO Administration Division’s integrated platform provides comprehensive REO asset management capabilities with services that reduce costs and maximize value. This division offers complete asset management, property preservation and REO broker capabilities, with a scalable national infrastructure to manage every aspect of asset management and disposition. It leverages its own proprietary monitoring and reporting systems that track key performance metrics and simplify portfolio management.

· Centralized Services - The Centralized Services Division supports the operations of the Rental and REO Administration Divisions, ensuring consistency, oversight, and quality control in property assessment, valuation process, property preservation, invoicing, and financial accounting and results.

In realigning the company with the newly defined divisions, systems and expertise are brought to bear on the growing desire by servicers and mortgage investors for greater flexibility to explore all avenues of owned residential asset management and improve loss control.

“Carrington Property Services now offers even more effective ways to use all the strategies available,” Ozonian said. “For the first time, lenders and servicers have a one-stop capability to manage all aspects of the asset management life cycle.”

Monday, June 20, 2011

Harris will Lead WFG National Title’s Default Services Division

Williston Financial Group and its wholly owned subsidiary, WFG National Title Insurance Company (“WFG National Title”), Portland, Oregon, have appointed Morgan Harris as Executive Vice President, Default Services. The Williston Financial Group family of title insurers is currently licensed and operating in 39 jurisdictions nationwide. The company is a full service provider of title insurance and real estate settlement services for lender, commercial and residential transactions nationwide.

As the head of the company’s default services division, Harris will oversee the growth of the division nationwide. The default services group will be headquartered in Simi Valley, California. Harris will be responsible for the strategic direction of the division, as well as the oversight and management of all aspects of sales and production. He brings to WFG National Title over 25 years of experience in the real estate and settlement services industry, having spent most of his recent career with three of the industry’s largest title insurers. Before that, he was the general manager for Rodeo Realty in Los Angeles, one of the region’s largest real estate brokerages.

“Default and REO services will continue to be an important element of mortgage and settlement services industry for years to come,” said WFG President and CEO Patrick Stone. “As such, Morgan is a premium addition to WFG. His deep understanding of his customers and the market will make him an excellent partner for our clients, and his knowledge of their processes will only strengthen our approach of tailoring our processes to fit theirs."

Wednesday, June 15, 2011

FNC® Introduces Another Home Price Index

For those of you tired of hearing about the Case-Shiller index, Oxford, Miss.-based FNC has provided an alternative. The company announced its new FNC Residential Price Index™ (RPI) and the annual National Association of Real Estate Editors conference (NAREE) in San Antonio, Texas. FNC’s Chief Data and Analytics Officer Bob Dorsey made the announcement, telling attendees that FNCs index is more accurate than other home price indexes.

“The RPI combines public record data along with data collected from millions of appraisal reports shared with FNC by its lender clients,” said Dorsey. “Combining all this data enables FNC to improve the accuracy of measuring the value of housing markets nationwide."

The RPI is a hedonic index, which means its data is based on the physical characteristics of all properties in a given market over a specified time period. FNC maintains that a hedonic price index is significantly more accurate than many of the other indexes on the market, including Case Shiller’s repeat-sales index.

“Due to the fact it is based upon so many properties, you can slice and dice it in a way that you cannot do with a repeat sales index,” said Dorsey, FNC co-founder and inventor of the compliance and workflow technology used by the majority of the nation’s largest lenders.

In his speech, Dorsey covered the current state of home prices as reflected in FNC’s RPI.

“Most lenders share their valuation data with FNC for the purpose of building a comprehensive source of residential property data,” Dorsey said. “The appraisal data provides a real-time source of sales and property characteristic information that is not otherwise available.”

Houses change and so do their neighborhoods, but the RPI takes all of those factors into consideration. It can determine the effect of school districts on house prices and even reveal how natural disasters impact the price of homes and for how long.

The index is posted monthly for 30 metropolitan areas. Other areas are available to journalists upon request. The index is available for download, and notifications will be sent each month as the data is posted to subscribers. More information about the new index can be found on the company's website.

Monday, June 13, 2011

A New Way to Predict Default

Sperlonga Data and Analytics of Arlington, Virginia, is offering a new service designed to help mortgage servicers reduce their risk on loan modifications by alerting lenders that a borrower is falling behind on their homeowners association (HOA) fees. The company is a subsidiary of national real estate asset firm MMREM.

Unpaid HOA fees, a clear sign of potential mortgage defaults, have historically been very difficult for lenders and servicers to track, according to the company. With this new service, lenders can now identify potential defaults or troubled modifications months before the borrower actually misses a mortgage payment.

It's not clear to me what action a servicer could take months before a borrower actually missed a mortgage payment or what personnel they'd use to do it, but technology could be deployed to moved these borrowers into a queue that would get more attention should they call in for modification or short sale information.

This might be particularly effective during the summer because if they're not paying HOA fees, they're not getting access to the pool.

“In the majority of the cases, borrowers will stop paying their HOA fees before they stop making their mortgage payment,” said Matt Martin, Sperlonga’s chairman and CEO of MMREM. “Knowledge that a borrower is late or delinquent on HOA fees will allow servicers to get in front of a loan that’s about to default, and in the case of loan mods, it can be even more critical to minimize losses.”