Exceleras: Shaving Weeks Off The REO Disposition Process
One of the most important metrics when it comes to real estate owned (REO) disposition is time. Every day it takes to move a property off the investor’s balance sheet and back into the market costs money.
Mortgage technologists have been working on this problem for a while now, but a recent internal study from Exceleras indicates that asset managers using the firm’s solutions can successfully shave time off the REO disposition process.
The internal study shows that REO managers using Exceleras’ DispoSolutions Real Estate Owned, ValueSolutions Collateral Valuation and ClearView Offer Management platforms – either separately or in tandem – have access to significantly more important metrics and that this is helping to reduce the amount of time that REOs stay on the market.
The internal study of 30,000 closed properties shows that REO managers using this suite of solutions can shave weeks off the REO liquidation process.
The firm’s new ClearView Offer Management solution is a real estate offer negotiation tool that works with DispoSolutions and is designed to allow a buyer’s agent to submit an offer directly to the bank or servicer. Because the software connects the buyer directly to the seller, the seller has visibility to all offer traffic, which Exceleras claims will result in more offers, less fraud and shortened market time.
Over the course of 30,000 transactions, sellers using ClearView saw a 61.44% increase in the average number of initial offers (not counters) per property, or 2.90 additional offers per property (going from an average of 4.72 offers before ClearView to 7.62 offers after ClearView), the company says in a press release.
Not only did sellers receive more offers, but they also received better offers: The average percentage of sale price to initial listing price increased by 2.15% (from 96.75% before ClearView to 98.90% after ClearView).
In addition, the average time from receiving the initial offer to an executed contract decreased by 1.56 days (from 16.67 days before ClearView to 15.11 days after ClearView).
Perhaps more importantly, the average number of days on market (DOM) per property decreased by an impressive 7.20 days (from 54.92 DOM before ClearView to 47.72 DOM after ClearView).
“We’re still studying why we see this dramatic reduction in days in our data,” says Michael Harris, president and CEO of Exceleras. “We understand that saving time between the offer and contract is a benefit, but we want to understand precisely why our users are saving a full week. We suspect that it has most to do with the increase in offers. With more offers to choose from earlier in the process, REO disposition will take significantly less time.”
Auction.com Adds Ali Haralson As EVP, Client Management
Mortgage servicing veteran Ali Haralson recently joined Auction.com as its new executive vice president for client management.
Haralson has more than 20 years of mortgage servicing experience, most recently as chief operations officer and founding member of Specialized Loan Servicing, where she oversaw significant gains for the business.
Prior to that, she served as senior vice president of loan administration for Olympus Servicing, where she developed and managed a primary, sub- and special-loan servicing platform that realized a 900% growth rate in the company’s book of business.
Haralson also had prior roles with Direct Mortgage Partners and OCWEN Federal Bank FSB.
In her new role, Haralson is responsible for growing market share for Auction.com while helping its clients better mitigate the risks associated with distressed assets, leading to improved financial outcomes and a reduction in the neighborhood blight. She will be based out of the company’s Irvine, Calif., headquarters.