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The Crowne Plaza
Times Square Manhattan

1605 Broadway at 49th Street
New York, NY 10019
Tel: 1-888-233-9527

Track: Residential

Friday, June 21, 2013

10:00 a.m. -
Mortgage Servicing Rights - An Investment Opportunity and Diversification Strategy
Moderator: Jeffrey M. Levine, Managing Director, Financial Institutions Group, HOULIHAN LOKEY
Jim Harrington, Managing Director, RESURGENT MORTGAGE SERVICING
Shane Ross, Chief Operating Officer, SELENE FINANCE

Both strategic, delinquency and capital-related issues are causing banks to increasingly evaluate the sale of MSRs. With yields on Whole Loans tightening, investors are now looking at MSRs as a new asset class. Additionally, many distressed loan investors built or acquired special servicing operations to service their NPLs and are now re-positioning these platforms to support MSRs. MSRs also complement the modification and short-refi strategies that NPL buyers have developed, as they can use these capabilities to generate additional profits on HARP and other refinances. Our panel will include executives from leading specialty servicers who will speak to these diversification and investment strategies.

11:00 a.m. -
The REO-to-Rental Movement: Have we reached the tipping point?
Moderator: Rick Sharga, Executive Vice President, CARRINGTON MORTGAGE HOLDINGS, LLC
Panelist: Jed Kolko, Chief Economist and VP of Analytics, TRULIA
Dan Madger, Founder and Managing Director, ROCK CREEK CAPITAL
Diana Olick, Real Estate Reporter, CNBC

In less than twelve months, the REO-to-Rental movement went from an interesting idea to everyone's favorite investment strategy. But the anticipated bulk sales of foreclosed properties never materialized, as REO inventory levels dropped precipitously, and discounts on these homes shrunk rapidly. Aggressive purchasing by investors in hard hit markets has led to rapid home price appreciation, and left these investors with higher-than-anticipated vacancy rates while they repair and market the homes they've purchased.

Now, for the first time in several years, home prices are rising faster than rental rates in many markets, challenging investors' ability to deliver the returns they'd anticipated.

The panel will be discussing where we are in the lifecycle of this asset class (if, in fact, it's actually an asset class).

What does this mean for investors looking at this asset class? Given the lack of inventory, rapidly-rising home prices, and declining/flattening rental rates in many markets, where does the REO-to-Rental movement go from here? Are the strategies changing? And how will investors successfully navigate this changing market?

11:45 a.m. -
Performing with Re-Performers: A Future for Modified Residential Loans in your portfolio or on the secondary market
Bill Bymel, President of RSI Asset Management, SPURS CAPITAL
Hal Hermelee, Principal and Founder, BANC OF MANHATTAN CAPITAL
Peter Slagowitz, Chief Executive Officer, SPURS CAPITAL

Only a few years ago, there was little enthusiasm for approving modifications or buying re-performing loans. That paradigm appears to be shifting. More distressed loan owners are modifying and more buyers are stepping up to buy these re-performing modified loans at reasonable LTVs. What is the future for modifications and how can you capitalize on the re-performing market? Topics of discussion shall include:

  • Level of interest amongst secondary market buyers for re-performing loans
  • Balance forgiveness VS Balance deferment
  • Know the difference between a Good and Bad Modification
  • Factors in determining the value of a re-performing loan
  • Legal Perspectives on Modifications
  • Compliance considerations when choosing to modify or buy re-performers