At the start of this month, the two consolidated their loan servicing operations and will do business under the moniker of GEMSA Loan Services. Frazer would not comment on the financial terms of the partnership, but did say expansion is a natural evolution. There are no specific expansion plans as yet, he adds.
The deal has been locked in negotiations for the past several months. Loan origination will be kept separate. The partnership will provide both companies with certain economies, says Frazer, and a more extensive lending and borrowing reach. GE Capital Real Estate brings sophisticated technology and processes to the table while L.J. Melody brings customer services practices and extensive lender relationships. Frazer would not comment on the financial terms of the partnership, but did say that expansion is a natural evolution. There are no specific expansion plans as yet, he adds.
GE Capital Loan Services Inc. was merged into GEMSA and its CEO, Joseph Beggins, named as CEO for the newly formed limited partnership. Robert Vestewig, Melody's managing director, is COO for GEMSA. L.J. Melody's six regional servicing offices will become a part of GEMSA.
Beggins says "this partnership will enable us to deliver the industry's most efficient, personalized servicing combined with strict confidentiality and data security." GE Capital's Web-based 24/7 borrower and investor information system will be integrated into the operation.
L.J. Melody services about $17 billion in loans and GE Capital, nearly $33 million. In all, the duet represents a total of 7,000 loans in excess of $50 billion. L.J. Melody has originated loans for GE Capital for years, explains Frazer. "It was a natural fit," he says. L.J. Melody & Co. is a CB Richard Ellis company.GE Capital Real Estate is a division of GE Capital.
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