The CEO of Sabal Financial Group is focused on the third-party servicing space after discovering it as a niche business with potential, National Mortgage News reports.

The trend is bound to generate new demand for niche market expertise, local knowledge and experience, he explained. Banks that are new to the CRE market are looking for services that comply with FDIC and OCC requirements, offered by trusted entities that are monitored by the rating agencies. “Regulators will be paying close attention to banks re-entering this space,” he said, so finding the right third-party service provider is essential.