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90 STATE OF AFFAIRS: MIDWEST/WEST » continue to service clients with whom they have well-established relationships. "We are looking forward to the strategic partnership with Butler & Hosch and the operational support that a national plat- form will provide to our organization," said Sid Gelernter, managing partner of McCurdy & Candler. Housing industry analysts anticipate that more acquisitions of this nature will occur as the foreclosure market stabilizes. "We will continue to see a lot of consolida- tion in the default space, especially through mergers and acquisitions, or some companies will just shut down," said Rick Sharga, EVP for Auction.com. "e unfortunate reality for com- panies that are dependent on REO inventory for their livelihoods is that we won't see an influx of inventory coming back in to the industry." Companies looking to remain viable in the default servicing industry need to begin to reinvent themselves, Sharga says. He's noticed that some companies are moving upstream and providing their services in the earlier stages of default to survive. "e ones that can only do REO work are, unfortunately, looking definitively at an end to their business," Sharga said. Companies looking to expand their footprint may soon find ample opportunities to do so, he continued. e Dallas-based Butler & Hosch has been quickly expanding its presence across the country. Last year, the company also acquired Cal-Western Reconveyance, a well-established trustee company. With the McCurdy & Candler acquisition, Butler & Hosch will increase its presence in Georgia and add Tennessee to its foot- print. Currently, the firm operates in nine states. Bob Hosch, managing partner at the law firm said that clients would not be affected by the acquisition. McCurdy & Candler se- nior leaders Deborah Cheek, Sid Gelernter, and Michael Dugan will continue to manage all le- gal and compliance operations post-acquisition. While terms of the deal were not dis- closed, sources confirmed that the deal is in its final stages with both companies complet- ing the due diligence process. e acquisition will be completed by the end of the month. McCurdy & Candler is authorized by both Freddie Mac and Fannie Mae to perform default services in Tennessee and Georgia and will continue to perform default services in those states under the new part- nership. McCurdy & Candler's general practice will not be affected by the move and will continue practice and operations in Decatur, Georgia. IN THE NEWS Virginia Bank Closed, Fourth Collapse of 2014 e Federal Deposit Insurance Corpora- tion (FDIC) announced at the start of March the closing of Millennium Bank, National Association of Sterling, Virginia. e bank was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as the bank's receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with WashingtonFirst Bank of Reston, Virginia. WashingtonFirst will assume all of the deposits of the recently closed Millen- nium Bank. e two branches of Millennium Bank, N.A. will reopen as branches of Washington- First Bank during normal business hours. According to the FDIC's press release, "As of December 31, 2013, Millennium Bank, N.A. had approximately $130.3 million in total assets and $121.7 million in total deposits." WashingtonFirst Bank will pay the FDIC a premium of one percent to assume the closed bank's deposits, and "agreed to purchase essentially all of the failed bank's assets," according to the release. "e FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.7 million. Compared to other alternatives, WashingtonFirst Bank's acquisition was the least costly resolution for the FDIC's DIF," the release stated. Millennium Bank, N.A. is the fourth FDIC-insured institution this year, after Syringa Bank was shuttered earlier in the year. e bank's closing was the first in Virginia this year, and the latest closed in the state since Bank of the Commonwealth, Norfolk, was closed September 23, 2011. VirPack Upgrades Document Management System VirPack released version 3.3 of its Docu- ment Management and Delivery System. e Virginia-based company announced in a press release the new version is "designed to make a real difference to lenders because they reduce labor costs, improve accuracy, and increase origination and delivery efficiencies." Ruben M. Peña TC AUSTIN RESIDENTIAL GROUP, LLC 12950 Country Pkwy Suite 180 San Antonio, TX 78216 210.490.3948 ext. 1002 Offi ce 210.424.0420 Fax 210.710.2612 Cell www.tcaustinres.com Knowledge & Experience You Can Count On Virginia RANK: 47 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JANUARY 2014 2.02% 0.71% 5 YEAR AGO 2.37% 1.17% 5.7 YEAR-OVER-YEAR CHANGE -15.1% -38.9% -0.7 Top County WISE COUNTY 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 3.17% 2.35% YEAR AGO 2.78% 1.99% YEAR-OVER-YEAR CHANGE 13.9% 17.9% Top Core-Based Statistical Area WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 2.27% 1.65% YEAR AGO 1.62% 0.88% YEAR-OVER-YEAR CHANGE 40.7% 87.6% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the January 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary January 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics.

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