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DsNews: Advent REO Officially Opens    DsNews: REO Industry Insights

REO Industry Insights: Where Does All the Talent Go?
Contributing Writer: Jason Purkiss | 01.03.08

Asset managers, customer service specialists, and loss mitigation managers continue to get laid off as subprime lenders are forced to make cut backs. When Homecomings Financial decided to close their San Diego site and move their servicing to Dallas, hundreds of skilled workers found themselves out of a job.

As a seasoned asset manager, I was one of those employees. Like many of my co-workers, I had a skill that was very marketable to the default industry. Moving out of San Diego was not an option so I had to decide whether to go work for an outsource asset management company or to go out independently and open my own asset management shop. More and more asset and loss mitigation managers are having to ponder the same options. Some of the most productive REO agents are former asset managers.

Jeff Peargin of ReMax Greater Atlanta was once an asset manager with Homecomings and is now one of the top producing ReMax agents.

I looked at where I would be in five years and with an outsource vendor my growth would be limited. So instead, I went to work at building my own asset management company, Advent REO LLC. Professionally I need to have unlimited opportunity to grow, especially in this ever changing REO market.

With my experience working directly for a large financial institution I understand exactly what the client needs. As the REO volume increases at a rapid rate many outsourcers are struggling just to maintain capacity. Capacity is important to the bottom line but ultimately we need to guarantee a high quality of service. With asset managers located in their markets it empowersthem to make better decisions.

As the default industry works to get through the next five years REO managers will find themselves searching for alternative means of disposition.