DebtX's Greenland

GlobeSt.com: What can your data tell us about pricing in the market right now? Something more specific than it is very bad right now.

Greenland: Unfortunately I cannot give you specific examples. Each loan is different so that would mean we are talking about specific transactions. Also October pricing is coming out on Thursday Oct. 30, and that will be radically different than what we saw in September. You can find that information on Bloomberg.

GlobeSt.com: The HUD deal is a significant win for you, correct?

Greenland: Yes. It is a three-year contract and it is exclusive – HUD has not done that for at least eight years. One reason why they picked us is because we are combining due diligence services with loan services, which is cost effective for them.

GlobeSt.com: What does this contract mean for the buy side?

Greenland: Buyers won't have to learn how to ramp up for each HUD offering -- there will be the same structure and rules of engagement over next three years. Also HUD is one of the largest financiers in the multifamily industry and anytime the system has a process that gives the industry a sense of what the worst-case exit strategy is -- besides bankruptcy -- that is always helpful.

GlobeSt.com: How will your process differ from how HUD has sold its loans in the past?

Greenland: For the last eight years HUD has hired loan sale transaction specialists for one-year terms. It would do one or two offerings per year on average.

GlobeSt.com: Do you think the three-year contract means it will bring more offerings to market?

Greenland: I cannot speak to that other than to say we have not had that discussion with them. But by hiring DebtX that becomes an available option for them. Since we operate a marketplace where loans are sold every day we don't have to make a lot of noise in order to gather a large number of buyers for the sale. We have a constant pool of liquidity here.

GlobeSt.com: You are also selling loans for FDIC, correct? Do you see this as a new trend – the government using this technology to sell its paper?

Greenland: I would think so. Now that there is more paper to move there is a growing recognition that outsourcing is more cost-effective. Also that it can give sellers access to more liquidity.