REDC Plans to Launch Loan Site
IRVINE -- REDC here, which has been doing a swift business in selling distressed homes, plans to enter the whole loan auction market, focusing on non-performing mortgages and other types of first deeds.
The company also may enter the origination space. A spokesman for REDC – known formally as Real Estate Disposition LLC – confirmed the auction company’s loan sale plans.
REDC bills itself as the world’s largest real estate auction company. A handful of firms have sprung up in the past two years to sell performing and troubled whole loans over the Internet.
Other loan auction companies include LoanMarket.net and BigBidder.com. REDC was launched early last decade. At one time it was owned, in part, by Impac Holdings of California, once a top ranked alt-A lender and servicer. One mortgage vulture fund executive, requesting his name not be used, noted that selling loans over the Internet is more difficult than it sounds. “It involves a lot of handholding on the part of the auction operators,” he said. “It takes hours upon hours to educate buyers on how this thing works.”
This executive added that some listers of loans might be using such websites to “market to market their portfolios” with no intention of selling.
Impac reportedly grossed $200 million when it sold REDC to private investors. However, the sale price has not be disclosed. Impac is still publicly traded but is listed on the OTC “pink sheets” market. It no longer originates new loans but continues to service a portfolio of mortgage assets.