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June 27, 2008
Servicer Offers a Deal to Banks Clinging to Assets
Residential Credit Solutions Inc. is a startup devoted to purchasing and servicing distressed mortgages, but its president, Dennis Stowe, says banks and lenders are hesitant to unload their assets as they weigh whether it is better to sell nonperforming assets at substantial discounts or hang onto them despite the likelihood of additional price declines. The firm could handle up to $6 billion in loans and services $1 billion currently, and Stowe points out that its loss mitigators handle only 125 cases each—far fewer than the 500 to 1,000 cases taken on by loss mitigators at many third-party servicing firms.
Posted by S. Germain at June 27, 2008 08:16 AM