Disaster relief company jumps into REO
Homeland Security Capital Corp., which operates in a variety of fields including nuclear, environmental and disaster relief work for the government and private sector, is heading into REO asset management. The company, run by former Maryland congressman C. Thomas McMillen, bought all of the assets of the former Default Servicing LLC on June 23. Homeland will bundle the operations into a new subsidiary, Fiducia Real Estate Solutions. It will conduct property inspection, valuation, eviction, closing and assign properties to REO brokers. Fiducia recently secured a contract to provide these services for more than 1,400 properties held by an unnamed U.S. bank. It expects to receive up to $2.9 million from this contract through 2014. But the new firm is will be targeting the larger portfolios held by government agencies such as the Department of Housing and Urban Development, Fannie Mae and Freddie Mac. "With Washington, D.C. now having effective control of the housing market, either owning or guaranteeing an estimated nine out of 10 new mortgages, this acquisition provides us with an opportunity to leverage our government contracting expertise to generate new business and revenue," McMillen said. Write to Jon Prior. Follow him on Twitter @JonAPrior.