Default Resource, a diversified financial services company offering collateral valuation and inspections, REO management and disposition, comprehensive training, hazard recovery and related services, announced today its new Asset Surveillance Report (ASR) to inspect and oversee the work performed by REO and short sale listing agents. The new report will be offered through the company’s Mark To Market valuation division.

“Our research indicates that some of the brokers who are taking on high levels of REO are ill-equipped to professionally manage and market these properties,” said Frank Marshall, President and co-owner of Default Resource. “Previous studies have found many inconsistencies in the quality of the service offered to REO property owners and managers and there is a cost associated with this level of performance. This new program will provide a means by which REO asset managers can ensure that their listings are being maintained appropriately and their properties are selling faster and to the right buyer while maximizing recoveries.”

Through the Asset Surveillance Report, Mark To Market sends out independent inspectors to listed REO homes. The inspection agents report back if the home is being properly maintained, has visible yard signage, lockbox in place, is listed appropriately in the MLS and the appropriate marketing materials are available in the home. Any hazardous conditions are detailed in the report as well, which also includes photos of the property. The reports are filed by the inspectors using Mark To Market’s secure portal.

The new service fits well with Mark To Market’s existing line of real estate valuation tools. The company taps its existing network of licensed agents (over 20,000) as well as property inspectors to perform the inspections, and expects the product to be very successful.

The maintenance, security and marketing done by the listing agent is at the core of what is needed to effectively reduce the inventory levels of foreclosed homes that are on the real estate market today. If REO assets are improperly assigned, those properties may languish on the market until some other more motivated agent is reassigned the assets and markets them effectively to the right buyer pool.

“Whether it is complacency, lack of capacity or worse, this underperformance results in homes sitting on the market too long. This has adverse financial impacts to the seller and individual neighborhoods,” says Marshall.

Research performed by Executive Asset Management, an REO asset management company owned in part by Default Resource, shows that it costs banks on average $150 each day a property remains on the market. In cases where empty properties are vandalized, or damaged, it can cost the bank much more money and grief.

This service is unique in that the report comes from an objective third party and will allow servicers or investors to know at a glance how their real estate sales partners are performing. The company has already signed contracts with servicers and asset managers, including a Top-5 and a Top-10 mortgage loan servicer. The new report is expected to appeal initially to firms managing REO and short sale listing agents, but it will eventually have applications in other parts of the business, including auditing the performance of servicers for investors and third-party originators for banks.

The weakest link in the disposition of REO properties is the maintenance, and marketing of the individual properties. This new service can be customized to any client’s individual needs and is equally effective with properties listed for short sale.

Default Resource, a diversified financial services company offering collateral valuation and inspections, REO management and disposition, comprehensive training, hazard recovery and related services, has announced that six of employees from the company’s Mark To Market division have graduated from its new executive development program.

Default Resource has been providing training to industry executives in the default services sector of the mortgage business for some time. General executive development is a new offering for the company and has now been successfully deployed internally to develop executives for its growing Mark To Market real estate valuation business.

“This program allowed us to take six promising candidates and give them the skills they need to move into demanding management positions,” said Default Resource President Frank Marshall. “Our industry is in desperate need of leadership right now and effective training is the only way to prepare our people for the challenges they will face as we work our way through this housing downturn. I’m very proud of the Mark To Market employees who have completed this course.”

Participants met for 8-10 hours per week and completed an additional 5-8 hours of independent study in order to complete the seven-week program. They studied leadership management, the importance of team, time and process management, strategy, execution, and change management, dealing with people and accounting and finance and business development. The goal of the class was to match the right person to the right job. All six participants received a promotion upon completion of the course; two were promoted into management positions.

“This program was a big success for us internally and it will also benefit other firms that are serious about developing their own executive talent,” Marshall said.

Default Resource will be adding the new executive training program to its Default School division’s offerings in the weeks ahead.