SN, Bank Trade Group Team Up
SN Servicing Corp. has entered into an exclusive arrangement with America's Comm-unity Bankers to provide the trade group's members with workout services on problem assets.
As part of the agreement, the Eureka, Calif.-based workout and investment firm, will provide free pricing estimates on nonperforming loans and foreclosed real estate and, when requested, submit offers to purchase the assets.
"Under our exclusive ACB members-only agreement, SNSC will offer a unique, preferred pricing structure as well as an extremely simplified purchase and sale agreement - unlike any in the industry," ACB president and chief executive Diane Casey-Landry said.
SNSC specializes in working with small and midsized firms and it will purchase one, five or 10 loans at a time, according to the company's senior vice president for sales, Tim Campbell. He stressed that SNSC is service orientated and expects to profit from long-term relationships.
"Their focus on service is why we chose them," ACB SVP Debbie Whiteside said. Ms. Whiteside heads ACB business partners, which also has alliances with Fannie Mae, Freddie Mac, Countrywide Finance Corp., CitiMortgage Inc. and Genworth Financial.
Under the alliance agreement, SNSC will provide ACB member banks and thrifts with free mark-to-market estimates on problem assets within 24 hours along with recommended workout options.
At the members request, the servicing company will make an offer, subject to due diligence, to purchase the assets with 30 days. SNSC president Robin Arkley founded the company in 1987 and it has a $1.3 billion portfolio, including $300 million in office buildings.
Mr. Arkley likes to hold on to assets, Mr. Campbell said, although the company occasionally securitizes performing and "re-performing loans." The company's loan servicing platform is located in Sacramento.
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