Strategic Opportunity: Non-Owner Occupied Mortgages

An initiative of LANDCO Portfolio Services. LANDCO provides risk-management for holders of non-owner occupied mortgages and special servicing for troubled loans.

LANDCO’s Non-Owner Occupied Mortgage program is an opportunity to deliver best-in-class risk-management to lenders. The program can help make billions of dollars in financing available to private entrepreneurship by supporting thousands of non-owner occupied mortgage originations and bonds collateralized by them.

A. Rationale

  • Single family rental homes today represent a big opportunity for commercial lending
  • At the same time, non-owner occupied mortgages have shown a remarkably high rate of default since 2007
  • Banks and bondholders need a dependable regime of risk-management if they are to re-open this opportune segment
  • Critical management areas: lease compliance, financial reporting, physical inspection, troubleshooting
  • There is as yet no “go-to” firm in the area of managing risk in non-owner occupied mortgages

B. Business Model

A combination of real estate disciplines:

  • Income property underwriting
  • Commercial loan servicing
  • Risk-management and mitigation
  • Standardized reporting & notification
  • Property inspection, lease evaluation
  • Branded call center, customer service
  • Special servicing

C. Platform

  • Forms & systems interface:
    • Compliance, financial reporting, leasing, physical inspection, maintenance

  • Strategic relationships:
    • Home warranty, home maintenance, security, marketing & resale, renters’ organizations, legal