The REO Market Evolves to Attract Consumer Home Buyers
October 27, 2016
Mortgage servicing professionals identify financing options, education and consumer-friendly technology as critical to drawing individual buyers to the auction market
LUXEMBOURG, October 27, 2016 – Altisource Portfolio Solutions S.A. (“Altisource”) (NASDAQ: ASPS), a leading provider of real estate, mortgage and technology services, polled 100 mortgage servicing professionals in attendance at the recent Five Star Conference and Expo in Dallas, the nation’s largest gathering of mortgage servicing professionals. The poll finds that participants are optimistic that continued low interest rates will encourage home buying (44 percent) and new financing options from lenders will broaden the buyer pool (39 percent).
The survey indicates that respondents believe offering more financing options to home buyers for auction properties (38 percent) will be a factor in attracting a more consumer-based audience, followed by over a third of respondents (34 percent) who say education about the auction market and the use of real estate agents to promote auction properties (34 percent) will be needed to attract consumer interest in purchasing REO homes. Furthermore, 28 percent of respondents view having access to more robust market data and insights as the most important aspect to make the greatest impact in the REO market.
“The bank-owned real estate sector was largely untapped by individual home buyers until recently,” said John A. Vella, chief revenue officer of Altisource. “Today, individual buyers can benefit from smart financing options like rehab financing, otherwise known as a FHA 203(k) loan, which bundles the home purchase price and renovation costs into a single mortgage. This is a huge step in the right direction because it can help buyers purchase affordable properties from the REO market, especially at a time when inventory is low and housing prices are continuing to climb.”
The survey had 100 participants and was conducted at the Five Star Conference and Expo held in September 2016. Respondents consisted of mortgage servicing professionals attending the conference.
Altisource Portfolio Solutions S.A. is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. Altisource’s proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics improve outcomes for marketplace participants. Additional information is available at altisource.com.