Green River Capital: Expanding options for REO asset management

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REO asset management has changed significantly in the last few years, and GRC has changed with it. The company’s robust client base, which includes the GSEs, national and regional banks, servicers, private equity firms and credit unions, has different objectives for their REO properties, so GRC has developed flexible systems, processes and market knowledge to offer exceptional service for every scenario.

“A byproduct of our diverse client base is that we see many different ideas and thought processes for repairing, marketing, and selling real estate across the U.S. We are able to share best practices with our entire client base and assist them with their goals for their assets,” said Brent Taggart, senior vice president at Green River Capital.

Whether it is valuing assets for due diligence, mark to market, purchases, or selling REO for its clients, valuation is key in Green River Capital’s business and what has made GRC successful for so long.

“We rely on a strong group of professional real estate agents, technology, experienced employees, and sound policies and procedures to help us in valuing real estate assets nationwide,” Taggart said. “We have dedicated a tremendous amount of time analyzing our results, speaking with clients, ratings agencies, and other users of valuation products to produce best-in-class valuation products.”

GRC utilizes its valuation knowledge as it helps clients decide on liquidating or retaining assets, especially with large property inventories in areas like Florida. After performing an analysis on each asset, GRC determines the best liquidation strategy, which could include REO liquidation through a real estate agent, bulk sales or rental.

The explosive growth in the single-family rental market has meant explosive growth for Green River Capital as well. GRC has created teams that specialize in the valuation, repair, surveillance and management of rental assets across the U.S., and the company has created products that allow it to analyze and understand market, trends, and determine best course of action on those assets.

“GRC has been a leader in the single-family rental space and has valued and performed due diligence functions on all assets that have been securitized in the single borrower securitizations,” Taggart said. “The single-family rental market has changed from its inception to where it is today, and we are proud to be a thought leader and major service provider in this space.”

To support and accommodate this booming asset class, GRC expanded the servicing options clients can choose from, introducing a component services division in 2013.

“We acknowledge that some clients wish to be hands-on and manage parts of the process. We have developed a component services offering that allows for our clients to choose to use GRC for end-to-end REO services, or select portions of the process such as eviction, repair management, title and title curative, tax and HOA management, or closing services separately,” Taggart said.

As part of its loss mitigation strategy for its clients, GRC works with sister company Green River Financial, a licensed debt collector in 50 States and the District of Columbia, to speak to borrowers about their debt and their options concerning loss mitigation, such as short sales or deed in lieu. GRF has been successful in reducing loss severity by negotiating subordinate liens, HOA dues and late fees, code violations, and cash for keys.

“GRF has a secure case management portal that allows for real-time updates on loss mitigation assets for our clients,” Taggart said. “GRF has successfully managed the short sale and deed in lieu process and the ultimate liquidation of those assets for our clients.”

As with its other products, GRC’s short sale offerings are nimble enough to adapt to changing industry or client needs. GRC recently acquired Red Bell Real Estate and their subsidiary companies which includes Pyramid Platform.

Pyramid Platform is a step-driven, template-based reo, short sale and deed in lieu processing system that allows clients to track the progress of their loans each day, based on specific requirements from regulators and investors or their own internal policies.

“GRC has spent many hours and capital to develop systems and processes to best assist our clients and create economies of scale and efficiencies,” Taggart said.

“We are constantly working with clients to identify the next growth opportunities and markets. Recent acquisitions of technology-leading companies demonstrate our commitment to innovation for our clients and to providing services that are unmatched in the industry.”


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