TPG Capital's purchase of the property information division of MacDonald Dettwiler and Associates puts the California-based private equity firm squarely in the middle of the foreclosure crisis.
TPG will buy DataQuick and Mindbox (collectively known as MDA Lending Solutions) and Marshall & Swift/Boeckh from MDA for $850 million.
MS/B aggregates and provides building material cost and replacement cost valuation data for the insurance industry, including the Federal Housing Administration's mortgage insurance program.
MSB technology provides "as-is" and "as-repaired" valuation for real estate owned properties the Department of Housing and Urban Development repossesses when a borrower defaults on an FHA-backed mortgage.
HUD uses the data to ensure that fees it pays field services managers to perform property preservation work are in line with industry standards and the repairs maximize REO returns.
In June, HUD overhauled its Management and Marketing program, a series of policies and procedures for its outsourced REO disposition business. In the new guidelines, called M&M III, separate contracts were awarded to firms that specialize in maintenance and marketing properties. By separating the tasks of maintaining and selling REO properties, specialized vendors now focus on providing one set of services to HUD.
