ResCap, Mountain Funding Enter Servicing Agreement
Mountain Funding, an investor in distressed real estate debt portfolios, entered into an agreement with GMAC-ResCap’s Business Capital Group to provide asset servicing and consulting advice for the real estate owned (REO) assets in their portfolio, a spokesman for GMAC said. ResCap, the fifth largest servicer in the nation, will continue to provide servicing for a portfolio of roughly 2.6m mortgage loans. As a result of the agreement, Mountain Special Servicing becomes a major asset manager of REO and and non-performing loan (NPL) assets, and its parent Mountain Funding will able to streamline its underwriting and bidding on distressed debt portfolios, says Peter Fioretti, Mountain Funding’s CEO in the press release. Mountain Funding absorbed 14 senior management and real estate professionals from GMAC's REO asset management group as per the agreement, according to the release. Mountain Special Servicing combines the servicing agreement with its existing portfolio to total 90 assets under management, more than $1bn in unpaid principal balance. Write to Jon Prior.