REOPro is in talks with a national technology platform about possibly revolutionizing the REO industry by allowing our members to go out into their markets and solicit REO's from small to medium sized banks and servicers.
The idea behind this effort is to make the agent the AMC (Asset Management Company). We have found that many local, small or even regional servicers just simply don't have the technology, expertise, staff or funds to hire or create a true "REO Department" for themselves. Instead, they assign an unfortunate VP of the bank to handle the REOs on top of doing their regular job.
What REOPro would like to do is provide our members with a technology solution that would enable them to go into their local banks, credit unions and servicers and offer them a true AMP (Asset Management Provider) solution. In essecne, creating micro AMP's across the nation through REOPro.
Basically what we would do, is give you access to a technology platform that allows you to customize it's performance for a particular lender or servicer in your area. You then could work for them and become their own little AMP and help them avoid the cost of outsourcing. This way, you could go into Bank of Small Town USA, show them your incredible software, your incredible support, your incredible tracking, etc..... and win them over as their own little AMP.
Truth is, we may never be able to capture a Bank of America or Chase but, a larger underserved market is out there and that is the local banks and credit unions who would like to outsource to a credible, knowledgeable and experienced AMP but, can't afford the cost.......here is where REOPro could step in.
The only question is, will our members go out there, sell our services as a AMP and win business? Of course, you would be our exclusive agent for any business you bring in but, would you do it?
Let me know, love to hear your thoughts.
Replies
This could be very good for local smaller banks and sounds like a great idea. What can I do to help?
Carolyn Russell
crussell@florida-foreclosures.com
Absolutely yes! The agent actually does every single bit of the work anyway.
It sounds exciting Jesse. I think the number one problem will be making the small banks see the need. Even if free, the initial investment in the learning curve and set up. Obviously they will be concerned with the security of the system. Most of the smaller banks just rely on simple emails to communicate tasking, requests, and documents. Many have very small amounts of REO in comparison with the larger outsourcers. Still if you think there is no potential in this idea, Carrington Mortgage disagrees with you because they are targeting this niche as well. Might as well be us!
Hey Derrick,
This is a great point to bring up and yes, it will be hard to convinces the smaller banks to use our option...even if it's free, if we approach it from a standard, generic, hey....we can do it to mentality however, I think the correct approach is more of a disaster / liability avoidance issue.
You see, the proble with these smaller banks, who are using emails and the good ol boy network is, it's not secure, it's not proctected and it definitely isn't following all of the regulations they are under.
So, our approach would be, STOP - opening your bank to huge liability, STOP - risking your clients personal and confidential information over open unsecured networks, STOP - doint things the wrong way and, START - getting back in command of your REO by using REOPro....blah, blah, blah....
I'd do it in a heartbeat.
I would also be interested. Keep me posted
I'm in, for a few states in the Northeast. Yes my reach is that wide right now. I am definitely in. Send more info as you get it.
This needs to be worked out, then the larger banks might see a way to try it in their regions that have fewer REO's.
Would like more information, this sounds like a real good online eucation to share by "go to meeting".
FWIW - I've been barking up this tree for a while now... without much progress. I have spoken with a number of loss mitigation/loan workout (choose your name), etc departments of local lenders, credit unions, etc and, in my area, they each only have a few files. So it's no sweat for them to process and they just outsource the listing to an agent they already have a relationship with. (I was going after specific REO assets & offered to service, etc... but they already had "their" agents that were getting the deals).
Overall, daily trustee sales volumes are down over 75%+ and of the properties scheduled for sale virtually all of them are cancelled or postponed. For instance, there was only ONE REO property for the entire week in the entire county (population 1.5M). We used to see 50+ REOs per day x 5 days week! And there are so many different "programs" being offered to defaulted borrowers as well as so many behind-the-scenes transfers, workouts, NPL sales, proprietary loan mods, mortgage to lease, assisted short sales, etc... it makes your head spin. I'm amazed how much bending-over-backwards is being done for folks who haven't paid their housing bill in 2+ years. Trying to get folks to short sale is an exercise in brickwall head-banging (free housing is SO much more compelling than "let me help you short sale, blah, blah"). The hardest thing I've ever encountered is the softness of indifference. Too many are gaming the system of free housing or skimmed rent. Foreclosure really is the best course, but it just AIN'T HAPPENING.
So I really think it depends on what area one is in. For my area... it seems like a very thin opportunity, if at all. I just don't see the volumes for it to be a compelling selling proposition to this target market.
However - I'm very willing to be wrong on this & go out there and hustle my tail off to get the business (if in fact it does exist).
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