Green River Capital LLC (GRC) has announced the formation of a surveillance division to address the risks surrounding the rapidly expanding REO-to-rental market. In collaboration with its parent company, Clayton Holdings, GRC is leveraging Clayton’s sophisticated technology and years of experience in credit risk management to customize product offerings targeting all stakeholders in the REO-to-rental markets, including investors, lenders, real estate investment trusts (REIT) and other parties involved in the securitization of portfolios.
“Rating agencies and institutional lenders have identified the property management function as an area of considerable credit risk related to the financing and securitization of REO-to-rental portfolios,” said Lorenz Schwarz, COO of Green River Capital. “GRC’s surveillance division monitors various risk components associated with “scattered-site” residential property management and provides our clients independent, third-party assessments of portfolio and property management performance, comparing this to underwritten assumptions and actual market performance.”
This expansion in services follows the launch of GRC’s component servicing division, established in September 2012 to provide customized services to investors and lenders entering the REO-to-rental market. The component servicing division provides an end-to-end suite of services to facilitate property sourcing, acquisition and collateral underwriting.