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» MARKET POISED FOR BULK SALES IN COMMERCIAL SECTOR Market conditions are primed for banks to begin unloading nonperforming assets, particularly commercial real estate (CRE), in the form of bulk sales, according to Fitch Ratings. Tightening yield spreads in the CRE market, pressure from regulators regarding loss reserve positions, and limited financing will prompt banks to unload nonperforming commercial assets over the next 12 to 18 months, according to the ratings agency. "We see tightening risk spreads reflecting an influx of yield-starved investors such as hedge funds, high-yield asset managers, and other lightly regulated entities seeking higher returns in a continued low interest rate environment," the agency stated. Fitch anticipates further tightening of spreads and a more stable CRE market will encourage prospective buyers to increase their bids for commercial properties. State consumer protection laws and wider spreads in the consumer-lending market suggest bulk sales will not be as popular in the residential sector, according to Fitch. Fitch notes a few banks have already begun participating in bulk sales transactions, including Synovus Financial, SunTrust, and Hancock Holding Co. During the fourth quarter of 2012, Synovus completed its first bulk transaction since 2010. The $530 million sale posed a 30 percent loss rate for the bank, but Fitch says this is an improvement from its last bulk sale two years prior when the bank incurred a loss rate of 40 percent. SunTrust engaged in a $740 million bulk sale recently with similar results. Fitch reported the sale held "just under 30 percent of carrying value." Also in the fourth quarter of last year, Hancock completed a $40 million bulk sale, citing "cost-savings factors" as its motive, according to Fitch. In addition to allowing banks "to focus more attention on core banking activities," unloading nonperforming real estate assets lets banks off the hook for costly upkeep, real estate taxes, property insurance, and other fund-draining holding costs. MOVERS & SHAKERS VISIT US ONLINE @ DSNEWS.COM CONTINUED FROM PAGE 34 Pro Teck Hires VP, Announces Director Promotion Pro Teck Valuation Services hired Kevin Vadenais as VP of product management and promoted Silas Nesheiwat to director of quality control. Vadenais' has more than 20 years' experience in product management, marketing, and business development. He is responsible for leading the company's migration to a new proprietary valuation platform. Previously, he led the enterprise management software product line at Acme Packet. Nesheiwat joined Pro Teck in June 2011 and, Nesheiwat is now charged with overseeing Pro Teck's quality control operations. He's also responsible for ensuring the Pro Teck team, continues to meet the highest levels of quality while remaining compliant with state and federal regulations. Before joining Pro Teck, Nesheiwat oversaw appraisers as VP and divisional group leader at both World Savings Bank and Wachovia Bank. Harvard Housing Center Appoints Chair for Policy Advisory Board The Policy Advisory Board of the Harvard Joint Center for Housing Studies selected Michael H. Thaman, chairman and CEO of Owens Corning, as board chairman. Thaman first joined Owens Corning, a global producer of residential and commercial building materials, in 1992. He has held a variety of leadership positions, including CFO and president of the company's exterior systems business. New General Counsel Hired at Ascension Capital Group American InfoSource, L.P. (AIS), announced the hiring of Alice Whitten as general counsel at Ascension Capital Group (ACG). ACG is part of the AIS family of financial services companies. At ACG, Whitten leads a legal department that includes an extensive team of legal bankruptcy specialists. Since 2009, Whitten served as a Chapter 13 trustee in Fort Worth, Texas. NDeX West President Appointed Chair of UTA Education Committee Chris Pummill, president of NDeX West, was appointed to serve as chair of the United Trustees Association (UTA) education committee. As chair of UTA, Pummill oversees and coordinates the association's annual educational conference and regional events. Pummill is also a member of UTA's board of directors. PNC Appoints CEO PNC Financial Services Group's board of directors elected PNC president William S. Demchak as director and announced he will succeed chairman James E. Rohr as CEO. Demchak joined PNC in 2002 as CFO. In 2005, he became head of corporate and institutional banking, until his promotion to senior vice chairman in 2009. He was named head of PNC businesses in 2010 and elected PNC president in 2012. First Financial Network Hires Exec to Lead Business Development First Financial Network (FFN) tapped Tim Buss to join the company as SVP of business development. Buss' new role requires him to lead the company's business development efforts, create client-focused solutions, and assist with marketing specific loans secured by commercial real estate. Buss was previously an SVP at NAI Global and NAI Hiffman. Duval & Stachenfeld Strengthens Practice with Two New Partners Duval & Stachenfeld, LLP, recruited attorneys Tom O'Connor and Alan S. Cohen as partners. O'Connor focuses in the area of commercial real estate, with an emphasis on real estate finance. He is known as a "lender's lawyer," but also has extensive experience on the borrower side of legal disputes. Prior to joining Duval & Stachenfeld, O'Connor was a partner at Cooley, LLP, in New York. He began his career as an associate attorney at Weil Gotshal. Cohen has more than 25 years' experience handling all aspects of complex real estate transactions. His particular focus areas include acquisitions and dispositions, construction and development, real estate finance, and hospitality matters. Before joining Duval & Stachenfeld, Cohen was also a partner at Cooley, LLP, in New York. STRATMOR Adds Partner to Head Marketing Strategy at Firm Mortgage industry advisory firm the STRATMOR Group brought on Garth Graham as a new partner. Graham joins SRATMOR with 25 years' experience in sales and marketing. In his new role, he is responsible for leading STRATMOR's marketing strategy and execution practice, including lead generation and lead management. Five Star Institute Hires EVP of Client Relations Chris McCormick joined the Five Star Institute as EVP of client relations and strategy, assuming leadership and management responsibilities for the Federation of REO Certified Experts (FORCE) and the Five Star Default Title Coalition. Prior to working at the Five Star Institute, he held positions with Nationstar, Saxon Mortgage, Tactical REO Servicing, First American REO Servicing, and Litton Loan Servicing. 37

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