LAMCO Marks 20th Anniversary
Littleton, CO-Lenders Asset Management Corp. here is marking 20 years of serving the mortgage industry.
Since 1989, LAMCO has delivered REO solutions that enable lending institutions, servicers, investment firms and insurance entities the ability to cost-effectively scale operations and liquidate REO assets with mitigated risk. Up to present date, LAMCO has liquidated more than $5 billion in residential assets for some of the largest financial institutions in the nation.
"Some clients engage us at the very beginning stages of default. Others engage us with just the REO side. Obviously, the spotlight is on our industry, so you see a lot of people jumping into the arena," Brandon Hawkes, CEO of LAMCO, tells MSN.
"But this is what the core competency of our company has been from day one. It didn't start out as a mortgage company that turned into an asset management company. This has always been the heart and the key to what LAMCO does."
In the last two decades, LAMCO has created a steady track record of successful disposition management operations, averaging a 45-day turn-time on REO properties it liquidates, compared to the industry standard, which is significantly greater. Also, LAMCO has consistently averaged 90% of BPO value per property sale.
Within the first three years of operation, LAMCO signed one of the top five lenders in the U.S., and for 17 years this active national client has continued to utilize LAMCO as an outsourced business partner for their REO disposition.
"It has not been a situation where a few years ago we did a little bit of business here, a little bit of business there. We're classified as their critical vendor, which we're very proud of. We can really adapt our business to what the different servicers' needs are," said Mr. Hawkes.
The biggest challenge their clients face these days is compliance. "Compliance issues are on everyone's hot topics. That's the buzzword that is going around right now."
LAMCO has witnessed local, state and federal entities begin to implement all sorts of regulations dealing with vacant property registration to inspections. Various municipalities are now requiring a fee to register these properties.
"They are finding this is a wonderful revenue source for their local government," said Mr. Hawkes.
"If these lending institutions are not registering these vacant properties within a certain timeframe, which by the way varies around the U.S. and county, they will start implementing fees per property per day.
"It's very important that we have the right processes in place to correct these situations immediately."