Daurio leaves CEO post at Kondaur Capital
Nonperforming loan investor Kondaur Capital said Tuesday its CEO Jon Daurio left the company, and it will restructure leadership roles going forward. The company's board of directors formed an office of the chairman, which will be headed by John Kontoulis and Greg Gault. Kontonoulis will become president and Gault the executive vice president of Kondaur. "We at Kondaur are committed to our core business as a leader in the distressed mortgage acquisition and servicing sector," Kontoulis said. "In addition to this commitment, and together with our senior management team, we continue our efforts to expand and develop other financial products and services within the mortgage industry." In April, Kondaur laid off 155 of the company's 398 employees. Then CEO Jon Daurio said the firm was having trouble sourcing nonperforming mortgages to buy. He blamed the robo-signing scandal and other servicing issues for the slow down. As recently as November, though, Daurio said "scratch-and-dent" loans were resurging onto the market, providing ample opportunity for firms like his. In May 2010, Kondaur employed as many as 420 asset managers to buy troubled mortgages, many of them failed Home Affordable Modification Program loans. The firm receives funding from private equity and hedge funds managed by Tourmalet and JAM Equity Partners. Daurio installed a policy at the company, limiting the amount of loans one asset manager could handle to 25. Cuts to staff of more than 20% were routine. But as servicing problems mounted late last year, the foreclosure and REO machine came to a standstill. In February, Daurio even blamed the banks for holding onto their assets in the hopes of home prices going up. "In the long run, kicking the can further down the road on distressed property sales will only depress prices further," Daurio said at the time. Jacob Gaffney contributed to this report. Write to Jon Prior. Follow him on Twitter @JonAPrior.