Olympus Asset Management

Olympus SVP Serves on REO Panel at Vista California NAHREP Meeting

Fri, 18 Jun 2010 07:51:00 -0400

Vista, California – Lynn Effinger, Senior Vice President of Scarborough, Maine-based Olympus Asset Management, recently served as one of the expert panelists at the Vista, North County, National Association of Hispanic Real Estate Professionals (NAHREP) monthly meeting.

A veteran of more than 17 years within the default servicing industry, Effinger was invited to participate by Maria Lopez Flores, President of this San Diego County, California chapter of NAHREP.

“We were very pleased that Mr. Effinger took time out of his busy schedule to participate on this panel with executives from US Bank, NuVista, Financial Asset Services and iServeREO,” said Flores. “Our members were tremendously impressed by the openness and willingness of these special panelists to share their knowledge and insights with all of us.”

Ms. Flores was impressed enough with Effinger to suggest that he join the Vista NAHREP Chapter and perhaps become a member of their Board of Directors.

“I would be honored to be involved in any way deemed most appropriate,” said Effinger, who is a highly respected 17-year veteran of the mortgage default servicing industry.

Olympus SVP Guest Speaker at 2010 Annual NRBA Conference

Mon, 07 Jun 2010 09:05:24 -0400

Denver, Colorado – Lynn Effinger, Senior Vice President for Scarborough, Maine-based Olympus Asset Management, was a guest speaker at the 2010 Annual National Association of REO Brokers (NRBA) Conference here recently.

A veteran of more than 16 years in the default servicing industry, Effinger was invited to speak at this three-day conference by NRBA President, Michael Krien. Effinger’s main topic, “The Power of Perseverance,” covered his experiences growing up having been born without a left hand, but never letting that fact keep him from accomplishing lofty goals, such as playing Little League baseball, high school, college, and semi-pro football. He even earned a tryout with the Washington Redskins of the NFL.

“Lynn’s presentation was very inspirational,” said NRBA attendee Terri Workman of San Diego. “It is a moving, compelling story that touched the members and gave those who had never heard Lynn before, as I have, to learn about his character and determination to succeed.”

The NRBA is a trade association serving the mortgage loan default servicing industry nationwide. The respected organization is made up of experienced REO Brokers from all 50 States and is considered by many to be the premiere Broker organization specializing in REO marketing, sales and disposition.

Olympus SVP Participates on Expert Panel at Five Star Short Sale Summit

Mon, 07 Jun 2010 09:04:48 -0400

Dallas, Texas – Lynn Effinger, Senior Vice President for Scarborough, Maine-based Olympus Asset Management, participated as an expert panelist at the recent Five Star Institute Short Sale Certification Summit held here on June 2 – 4, according to Eric Hirshberg, President of Olympus.

“We were very pleased that Lynn was invited by the Five Star Institute organizers to participate in these popular short sale certification sessions,” said Hirshberg. “Lynn is a long-time veteran of the default servicing industry who has considerable knowledge about all phases of REO marketing, sales and disposition, as well as the loan workout process on nationwide portfolios of non-performing real estate assets.”

Effinger’s presentation highlighted current and future economic conditions and the impact that a sustained recession will have on foreclosures and short sales around the Country.

“With so many lenders holding back on foreclosures the worst is yet to come,” Effinger was quoted as saying in his presentation. “More proactive short sale programs beyond those such as HAMP. HAFA and the National Homeownership Retention Program will help mitigate losses and assist more homeowners to get out from under onerous mortgage payments, but there will be a flood of foreclosures following the elections in 2010.”

Until that time Effinger expects the lenders and servicers to release REOs more slowly to avoid dramatic decreases in property values and incur major monetary losses while supporting the Obama Administration’s desire to keep as many homeowners in their homes as possible.

“While the government’s aims are laudable, there are only so many loans that will be successfully modified over time and short sales will only slow the rate of foreclosures, which means with over seven million loans currently in default there will still be a flood of REOs in the near future.”

Lynn Effinger to be Keynote Speaker at Women in Default Services Seminar

Mon, 07 Jun 2010 09:03:50 -0400

Scarborough, Maine – Lynn Effinger, who serves as Senior Vice President of Scarborough, Maine-based Olympus Asset Management, will be the luncheon Keynote Speaker at the upcoming Default Servicing Seminar being organized by WinDS (Women in Default services) to be held in Las Vegas on July 15 and 16, according to Eric Hirshberg, President of Olympus.

“Lynn was invited to address this growing new organization for and about women who work within the default servicing industry because of the depth and breadth of knowledge he possesses in all phases of REO asset management and disposition,” said Hirshberg. “But he is also an accomplished, inspiring and dynamic public speaker who is one of the most popular speakers in our industry today.”

Shelley Kaye, President of WinDS, added that Effinger has assisted with the development and growth of the newly formed organization with press releases and media exposure.

“Lynn’s efforts and hard work have helped put WinDS in front of the default industry and on the radar of news media and the public,” Kaye said. “Lynn is very respected by his peers. His credibility and integrity in the industry is widely known and he is a dynamic motivational speaker, as well, which will be highlighted at our upcoming seminar.”

For information regarding the WinDS trade association and their Default Seminar you may visit their web site at www.Womenin DS.com.

Olympus SVP Serves on Expert Panel at Craig Proctor REO Seminar

Thu, 20 May 2010 14:52:00 -0400

Los Angeles, California – Lynn Effinger, Senior Vice President for Scarborough, Maine-based Olympus Asset Management, was a featured expert panelist at the Craig Proctor REO Seminar held recently at the J.W. Marriot Hotel in Los Angeles.

A veteran of more than 17 years in the default servicing industry, Effinger was invited to speak at this four-day conference by Bryan Pelican, a veteran trainer and coach associated with Craig Proctor’s seminars.

“Lynn is a well-respected REO executive who has a wealth of knowledge that we wanted to be able to share with our seminar attendees,” said Pelican, owner/broker of American Realty in Las Vegas, Nevada. “We were very pleased that he was able to share his thoughts along with Debbie and Cary.”

Effinger participated on a special panel that included Debbie Decarolis of Wachovia (a wells Fargo Company) and Cary Sternberg of Excellen Asset Management. The main topics included the current status of the default servicing industry, expected trends in 2010 and 2011, the impact of HAMP and HAFA on the industry and borrowers, and thoughts on the so-called “Shadow REO Inventory.” Effinger was adamant that there is no “Shadow REO Inventory” despite the raging debate that has gone on for months within and without the default servicing industry.

“There is no Shadow REO Inventory, but it is quite true that there exists a huge backlog of foreclosures that has been caused by the sheer volume of mortgage defaults and the short-term inability of lenders and servicers to keep up from a staffing standpoint,” Effinger said. “In addition, the intervention of the federal government and the pressure they have put on lenders and servicers to do more and more loan modifications, despite the glaring failure of HAMP and HAFA have also contributed to this backlog.”

Sternberg and Effinger both agreed that REO flows will increase following the November elections and the backlog will begin to be flushed out. In fact, Effinger noted that Fannie Mae and Freddie Mac are already releasing REOs in increasing numbers.

Olympus SVP Guest Speaker at National NRBA Conference

Thu, 20 May 2010 14:51:00 -0400

Denver, Colorado – Lynn Effinger, Senior Vice President for Scarborough, Maine-based Olympus Asset Management, was a featured guest speaker at the 2010 NRBA (National Association of REO Brokers) Conference at the Omni Interlocken Resort on May 12 – 16.

A veteran of more than 17 years in the default servicing industry, Effinger was invited to speak at this four-day conference by Mike Krein, President of the NRBA, which is a premiere trade association made up of experienced real estate professionals who specialize in the marketing and sales of default servicing industry non-performing real estate.

Effinger’s main topic, “The Power of Perseverance,” covered his experiences growing up having been born without a left hand, but never letting that fact keep him from accomplishing lofty goals, such as playing Little League baseball, high school, college, and semi-pro football. He even earned a tryout with the Washington Redskins of the NFL.

In his motivational presentation Effinger also explained how he has taken the principles of hard work, sacrifice and dogged determination and applied them to his vocational career, which includes serving as Marketing Director for Shapell Industries, Inc., Director of Advertising and Public Relations for Great Western Real Estate, and Vice President-REO Manager of Great Western Bank, Washington Mutual and Citicorp Trust Bank. He then related how real estate professionals can benefit from applying the principles of hard work, determination and tenacity that enabled him to achieve success not only in athletics, but also in his business career.

In total, Effinger has served within the housing and mortgage default servicing industries for nearly four decades. He has been recognized not only for his success in business but also for his community service and commitment to helping others learn to overcome obstacles to be the best that they can be.

“I try my best to live by the credo as expressed by Zig Ziglar, one of the most famous motivational speakers and sales trainers in America,” said Effinger. “Ziglar says that if you help others get what they want, you will most certainly get what you want. I concur wholeheartedly.”

Olympus VP Co-writes Article for IN FROM THE ORB Lender-Directed Short Sales: Rare, But Not Extinct

Wed, 03 Mar 2010 13:26:00 -0500

Lynn Effinger, Senior Vice President of Scarborough, Maine-based Olympus Asset Management, wrote the following article. Upon reading it Tony Mallotto of Home Savings of America (Retired) said: “This article is one of the best ever written on the subject of “Short Sales” and should be read by every major portfolio manager and CEO in the business.”

For a link to the full article and comments please go to: http://www.mortgageorb.com/e107_plugins/content/content_lt.php?content.5353.

Lender-Directed Short Sales: Rare, But Not Extinct

By Lynn Effinger and Bob Zachmeier on Friday, February 26, 2010

REQUIRED READING: Even though Fannie Mae and others have kept foreclosures artificially low in recent months, a wave of mortgage loan defaults continues to flow across the U.S. There is mounting evidence that the Obama administration’s Home Affordable Modification Program (HAMP), though laudable perhaps, does little more than prolong the life of most nonperforming mortgage loans.

As a result, there is a rising demand for foreclosure alternatives - such as short sales - that allow homeowners to more gracefully exit a bad economic situation while mitigating much of the costly foreclosure losses to lenders. The protuberance of defaults and mounting losses on real estate owned (REO) sales have caused some lenders and servicers to consider developing more aggressive foreclosure alternatives that might include lender-directed, pre-approved short sales.

A short sale is much more complicated than an REO sale, for a variety of reasons:

The borrower still owns the property and, thus, controls the outcome;
Consumer protection laws are still in effect if a foreclosure has not been completed;
Scrutinized loans require investors to approve sales for anything less than loan value;
Mortgage insurance companies can become involved and may become the second-lien holder; and
Junior liens, such as second mortgages and homeowners’ association liens, are not released and, in turn, must be negotiated.

Default-industry analysts estimate that only about 5% of all distressed properties have been sold through short sales in recent years. Some believe that the percentage of short sales may have increased to 10% in 2009, will increase to 30% by the end of this year and perhaps to as much as 50% by 2012. The short-sale trend is definitely on the rise; one major loan servicer recently reported short-sale approvals on more than 30% of all the distressed sales in its inventory.

Clayton Holdings Inc., a firm that tracks mortgage loans for investors, found that a short sale can significantly mitigate the losses to a lender or investor. A study performed by the company showed that the average loss on a pre-foreclosure sale (i.e., short sale) was approximately 19% of a loan’s value, but the loss on a post-foreclosure sale (i.e., REO) was nearly 40%. One might ask why this upward trend in short-sale approvals has taken so long to materialize.

The desire to be aggressive and mitigate losses through this foreclosure alternative is a step in the right direction, but the key for these lenders and investors is developing the infrastructure, technology and streamlined systems that are required to make the short-sale process fast and repeatable. Unless these processes are implemented in a proactive manner, complete with pre-approved “strike prices,” short sales will remain a protracted exercise in futility that many real estate agents and their potential buyers avoid.

A February 2009 study by Campbell Communications showed that only 23% of short-sale offers from potential buyers actually close. More than 90% of the agents surveyed cited a slow response from the lender as the main reason short sales were lost. The slow response is usually caused by a lack of adequately trained staff to handle the dramatically increased volume of requests. Many times, the process can take upwards of six months to complete. Potential buyers, frustrated by the snail’s pace, often give up on short sales altogether, finding another property to purchase.

Staff training alone does not explain why so many traditional borrower-requested short sales fail. Borrowers who have stayed current on their mortgage payments despite a hardship may not be allowed to participate, or lenders might not agree that a particular hardship warrants forgiveness of the borrower’s contractual obligation. Lenders or investors sometimes refuse to drop the requirement for borrowers to sign promissory notes for substantial sums. Other times, the lender or investor may consider a purchase offer to be too low (only to eventually sell the property through the REO process for much less money).

Add the problems associated with subordinate lien-holders refusing to sign off on the transactions, and you get a better understanding of why such a low percentage of short sales have been successful in the past. Had economics been the driver of these transactions, there would undoubtedly be a much higher success rate.

Wachovia, a Wells Fargo company, is among the first major lenders to create an aggressive, proactive short-sale program. While the company continues to process borrower-directed short-sale offers, it has also launched a pre-approved, lender-directed approach that results in greater file velocity.

As a portfolio lender, Wachovia is not hamstrung by investors or others making the decisions on short-sale approvals on its World Savings and Golden West Financial portfolios, which are the focus of this pilot program. Wachovia does not pre-select or direct any particular listing agent to work with borrowers for obvious liability-associated reasons. The company encourages its borrowers to interview at least three agents and select the one with whom they feel the most comfortable.

Pivotal differences of the Wachovia pilot program include the following:

No hardship letter, pay stubs or financial statements are required.
Negotiators approve or counter offers within seven to 10 days after the offer is received.
There is no requirement for delinquent borrowers to have experienced a hardship.
Generous cash-for-keys payments are used to gain borrowers’ cooperation.
The listing agent is involved to develop a pre-approved strike price at which the property would likely be sold (much like the REO process). If a property doesn’t sell at the pre-approved price, reductions may be requested until offers are received.
The amount of the outstanding loan is not a factor in determining the list price. Unlike many lenders, Wachovia is focused solely on the economic benefit of short sales.

Other major lenders, including GMAC, have implemented or are about to implement more aggressive short-sale programs, as well. Some companies are far better at managing short sales than others, but all of them should focus on proactive communication, adequate staffing and training in order to streamline the short-sale process for both borrower-requested and lender-directed short sales.

GMAC has a special unit called “The Counsel to Sell Team” within its short-sale department that proactively contacts borrowers who have been denied loan modifications. The unit conducts outbound calling and mail campaigns to entice borrowers to consider a short sale, and GMAC reports a higher rate of success through this proactive approach.

Another possible solution being discussed is combining the lender’s loan resolution, loss mitigation and REO departments into one cohesive unit. This consolidated team could take full advantage of each employee’s skill sets and valuation expertise while benefiting from the synergy of using the same real estate agents for all aspects of the disposition process.

One of the toughest problems to resolve is the payoff expectations of the first- and second-lien holders. A few days prior to foreclosure, lenders should try to revisit the junior-lien holders that previously refused to accept a short-sale payoff. Giving them another chance to accept a short payoff before the foreclosure sale negates their lien makes financial sense.

Another possible solution to settle a stalemate between first- and second-lien holders would be to sell the properties to investors for a higher price than a homeowner would be willing to pay. True investors who take the long-term approach to investing care more about their rate of return and cash-flow than they do about the purchase price.

In January, the U.S. Treasury Department disclosed that only 66,500 loan modifications had been converted to the permanent phase of HAMP. The recently introduced Home Affordable Foreclosure Alternatives will prove to be similarly ineffective due to the inadequate “incentives” offered to lenders in return for approving short sales. It’s clearly up to the private sector - the lenders themselves - to create and successfully implement meaningful, aggressive and proactive short-sale programs.

Lynn Effinger is senior vice president of Olympus Asset Management, a national outsource company providing management and disposition services. He can be reached at leffinger@olympusasset.com. Bob Zachmeier, owner/broker of Tucson, Ariz.-based Win3Realty, can be contacted at bob@win3realty.com.

Olympus VP Guest Speaker at Craig Proctor “Super-conference”

Mon, 14 Dec 2009 14:00:00 -0500

Phoenix, Arizona – Lynn Effinger, Senior Vice President of Scarborough, Maine-based Olympus Asset Management, was a guest speaker at the “Craig Proctor Super Conference” held in Phoenix, Arizona from November 17 through 20, 2009.

A veteran of more than 16 years in the default servicing industry, Effinger was invited to speak at the REO management breakout sessions held the first day of the conference. Effinger’s main topic covered his extensive background in the REO business, the history of his association with Eric Hirshberg and Olympus Asset Management, the company’s long history of quality service in the mortgage default industry, the experience and skills of the employees at Olympus, trends in the housing market and the future of REO in the coming months.

“The response I received from the two packed houses of REO Brokers who attended my breakout sessions was extremely positive,” said Effinger. “They were very interested in our company and our business philosophy as well as my perspective on industry trends.”

Effinger noted that as a result of speaking at this conference he has been asked to be the first guest speaker at a special Distressed Property Master Mind group meeting in December and to perhaps join this group of highly experienced REO professionals in a special networking organization that could prove beneficial in helping him in his mission to secure new business for Olympus.

“Any chance I have to network with high caliber REO professionals puts us closer to landing new business,” Effinger concluded.

Olympus VP Guest Speaker at New England NRBA Conference

Mon, 14 Dec 2009 09:23:24 -0500

Taunton, Massachusetts – Lynn Effinger, Vice President-Client Relations for Scarborough, Maine-based Olympus Asset Management, was a guest speaker at the New England National Association of REO Brokers (NRBA) Conference here on September 17 – 19.

A veteran of more than 16 years in the default servicing industry, Effinger was invited to speak at this three-day conference by New England NRBA President, Frank O’Leary. Effinger’s main topic, “The Power of Perseverance,” covers his experiences growing up having been born without a left hand, but never letting that fact keep him from accomplishing lofty goals, such as playing Little League baseball, high school, college, and semi-pro football. He even earned a tryout with the Washington Redskins of the NFL.

In his motivational presentation Effinger also explains how he has taken the principles of hard work, sacrifice and dogged determination and applied them to his vocational career, which includes serving as Marketing Director for Shapell Industries, Inc., Director of Advertising and Public Relations for Great Western Real Estate, and Vice President-REO Manager of Great Western Bank, Washington Mutual and Citicorp Trust Bank.

“Lynn’s presentation was very inspirational,” said O’Leary. “It is a moving, compelling story that touched our members and even had a positive impact on my granddaughter when I told her of Lynn’s determination and courage to succeed against the odds.”

Olympus Executives Make Excellent Contacts at the 2009 Five Star Conference

Mon, 14 Dec 2009 09:23:00 -0500

Fort Worth, Texas – Eric Hirshberg, President of Olympus Asset Management, recently attended the 2009 5 Star Default Servicing Conference here in early October along with Mason Legendre, VP of Operations and Lynn Effinger, VP of Client Relations for his firm.

“This was a well attended conference with thousands of key individuals who either provide products and services to the lenders and servicers within the default servicing industry or are employed by these lenders and servicers in management positions where they make decisions on who to partner with to manage and dispose of non-performing real estate assets,” said Hirshberg following the conference. “In addition to meeting with our established clients we had the opportunity to meet with potential clients, as well, and some of these meetings hold out promise for securing new business.”

Scarborough-based Olympus Asset Management was established in 1997 to serve as a third-party outsource company providing management, marketing and disposition services to mortgage lenders and loan servicers nationwide.

Olympus VP Participates in Roundtable Talks at 2009 REOMAC Fall Conference

Mon, 14 Dec 2009 09:22:35 -0500

Hollywood, Florida – Lynn Effinger, Vice President-Client Relations for Scarborough, Maine-based Olympus Asset Management, recently participated as a featured speaker during the roundtable sessions at the 2009 REOMAC Fall Business Conference held here October 14 – 17, according to Eric Hirshberg, President of Olympus.

“We were very pleased that Lynn was invited by the REOMAC Conference organizers to participate in these popular roundtable sessions,” said Hirshberg. “Lynn is a long-time veteran of the default servicing industry who has considerable knowledge about all phases of REO marketing, sales and disposition on nationwide portfolios of non-performing real estate assets.”

Effinger’s presentation highlighted his background in this industry and the long history of Olympus Asset Management, which was founded in 1997 to serve as a third-party outsource company for mortgage lenders and loan servicers nationwide. He also reflected on current and future economic conditions and the impact that a sustained recession will have on foreclosures and short sales around the Country.

“With so many lenders holding back on foreclosures the worst is yet to come,” Effinger was quoted as saying in his presentation. “While more proactive short sale programs will help mitigate losses and aasist more homeowners to get out from under onerous mortgage payments there will still be a flood of foreclosures following the elections in 2010.”

Until that time Effinger expects the lenders and servicers to release REOs more slowly to avoid dramatic decreases in property values and incur major monetary losses.

REOMAC is the REO (real estate owned) Managers Association. It is the leading trade association of the mortgage loan default servicing industry. Its motto, “Knowledge and Excellence Through Education” reflects the organization’s goal of helping to enhance the professionalism of its members through business conferences and other training opportunities, as well as providing excellent networking opportunities to its members.