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LENDER/SERVICER PROFILE SPECIAL SERVICER Home Servicing, LLC key personnel David Caballero company vitals CEO Headquarters: Baton Rouge, Louisiana Don St. John Phone: 866.565.7979 President and COO George Caballero General Counsel Staffing » Servicing staff: 35 » Servicing sites: 1 portfolio summary * Portfolio Stats » Residential servicing portfolio: 3,715 loans; $450M (UPB) » Composition: Severely delinquent and performing first-lien mortgages » Third-party servicing: Provides subservicing to institutional investors, hedge funds, and servicers on performing and nonperforming loans, and REO » HAMP servicer » Licensed to service and collect in over 40 states » Servicing fees based on performance incentives and standard monthly fees Portfolio Growth Loan Count » 2012: 3,715 » 2011: 2,902 » Annual Change: +28% Unpaid Principal Balance (UPB) » 2012: $450M » 2011: $310M » Annual Change: +45% Loss Mitigation Stats » Over 70% of portfolio transferred seriously delinquent by 2 years or more » More than 3,000 workout solutions since 2010 » More than 1,500 performing loan modifications completed since 2010 REO Stats »Over 700 REOs totaling approx. $28M sold since 2010 » Concentration of REOs in the Midwest and Southeast *Statistics as of December, 31, 2012, unless otherwise noted Source: Home Servicing, LLC (1/21/2012) 90 Take a look inside the numbers s tat e s s e r v ic e d* Online: HSLLC.net Home Servicing, LLC, is a specialty servicer and principal investor in performing and nonperforming mortgage loans and real estate owned assets. Home Servicing services and collects only first lien mortgages and has provided special servicing to institutional clients and hedge funds since 2004. The company contends specialized high touch servicing on delinquent mortgage loans and REO properties presents "a real challenge" to traditional large-scale mortgage servicers. Home Servicing says its experienced management team, salaried field representatives, title and insurance experts, and loss mitigation specialists understand the importance of reducing loss severity on each asset and the peace of mind that comes with eliminating reputational risk by choosing the right servicing partner. Home Servicing has built its business on the ideal of "keeping the doors open to home ownership." Ohio 9.9% Michigan 9.9% Florida 9.1% Texas company's l atest 20.9% Indiana 9.0% *As of December 31, 2012 August 2012 Five Minutes with Don St. John, President and COO of Home Servicing DS: What are the keys to Home Servicing's success bringing seriously delinquent borrowers back to "performing" status? St. John: We have expanded our reach through field representatives, and this has increased our ability to connect with borrowers and given us a better understanding of these harder-hit markets. With our servicing model, we recognized the need years ago to restructure seriously delinquent borrowers' debt through reasonable principal writedowns. This method provides borrowers affordability and a renewed sense of ownership equity in their homes. DS: Your mission statement is "Keeping the Door Open to Home Ownership." Do you think the crisis has dampened consumers' views of homeownership? St. John: Yes, I think this crisis has dramatically changed the view of homeownership for an entire generation of homebuyers. However, like all previous real estate cycles, we believe this will normalize over the next several years as values stabilize and liquidity returns to the real estate lending markets. DS: Where does the special servicer fit in the servicing business? St. John: Our experience and success throughout this market cycle makes it clear to us that there is always a need for an innovative approach to special servicing and loss mitigation. Firms just need the ability and foresight to conform to current needs in all stages of the market cycle. —DS News magazine key technology Servicing: Harland Servicing Director REO Management: RES.NET Vendor Management: Vendorscape Data Center: Venyu Tier 4 Investor: Harland Web-based portal verbosit y "Home Servicing has experienced exceptional growth in our special servicing portfolio and has strategies in place to continue on the path to increased profitability. Maintaining proper staffing levels to maintain a single point of contact with our customers is what sets our company apart. Home Servicing maintains a culture that promotes the highest level of personal accountability, integrity, and a firm commitment to the communities we serve." —David Caballero, CEO acquisition str ategy Home Servicing invests in bulk pools of mortgage assets as well as single loan purchases. The company buys real estate secured mortgages from institutional and individual sellers and can fund in days, not weeks or months. Since 2003, Home Servicing has purchased whole loans in aggregate balance exceeding $200M. Although the company specializes in purchasing delinquent residential first liens and real estate, it's also in the market for residential first lien charge-offs.