banks

Banks of all sizes are facing homeowners who will not be able to make up past payments in forbearance. The stress on capital adequacy ratios since mortgages held on bank portfolios are generally subject to a 50% risk weight (4% capital requirement) - and when they become 90 days DQ, the risk weight rises to 100% - will undoubtedly impact balance sheets. Our asset managers work with your disposition teams at the pre-foreclosure stage - the ideal time to intervene with homeowners - and engage in a purchase agreement to transfer your NPLs. This allows us to do the work of intervening with the least harm to communities.

credit unions

Most of the nearly 7,000 U.S. credit unions have non-performing assets to sell. We understand the sensitivity of your reputation, as credit unions, often serve local communities and many times are the financial backbone of neighborhoods.

gse

Government-Sponsored Entities including Fannie Mae and Freddie Mac have NPL (non-performing loan) guidelines such as waterfall resolution tactics that first include evaluating borrower eligibility for a loan modification, then a short sale or a deed-in-lieu of foreclosure, many purchasers of pools are often arbitrage funds who have ways designed to circumvent these suggestions creatively.

FHA/HUD

The delinquency rate for the largest 169 Metropolitan Statistical Areas (MSAs), accounting for about 6 million of FHA mortgages, rose to 17.9%. For example, in the Houston metro (#2), 48,483 FHA mortgages are delinquent, or 22.5% of all FHA mortgages in the market. Of them, 32,224 mortgages are “seriously delinquent.” This creates the potential that tens of thousands of homes flood the market over a relatively short period of time.

Unfortunately, data reveals that foreclosing and disposing of an FHA-insured loan is orders of magnitude more expensive than servicing loans backed by the GSEs. This could be upwards of three times more than GSE nonperforming loans. Working with us allows for intervention prior to foreclosure.