SACRAMENTO-REOMAC, a nonprofit trade association heretofore primarily serving the residential mortgage default industry has formed a commercial real estate committee. The committee’s goal is to provide those within the private sector of the default industry a resource for education, information and networking.
“In light of the imminent tsunami of commercial mortgage defaults and foreclosures, it is crucial that our organization find new and innovative ways to help the private REO industry respond,” says REOMAC president Shelley Kaye.
The Commercial Real Estate Committee will be led by co-chairs and REOMAC members John Murray and Peter Monroe. Monroe, formerly chairman of Resolution Trust Corporation (RTC) Oversight Board and Chief Operating Officer of the FHA, is currently a lawyer, real estate broker and venture capitalist. Murray, which sits on the REOMAC board, is a managing member of Perennial Value Management, a division of Australia-based Perennial Investment Partners.
“There are more than a half a trillion dollars of commercial mortgages requiring refinancing over the next three years,” Monroe says. “Given the state of the economy, the debt markets and the great number of commercial mortgages in complex conduit structures, a commercial meltdown of historic proportions is inevitable. It is appropriate that REOMAC expands its scope of services to include the commercial REO at this time.”
REOMAC provides information that members may be able to use to mitigate losses on defaulted mortgage loans. It also offers ancillary services to lenders and servicers, such as managing, marketing, maintaining, selling and ultimately disposing of non-performing real estate assets. REOMAC members total 1,500 and include mortgage lenders, servicers, attorneys, title representatives, asset management outsourcers and real estate brokers.