"We have been pursuing this acquisition for several months," says Peter Fioretti, CEO of Mountain Funding and its affiliated management company, Mountain Special Servicing. He adds that his company expects to be a "major player" in underwriting and bidding on distressed debt portfolios over the next three years.
As part of the acquisition, 14 former ResCap senior management and real estate professionals have joined Mountain Funding's existing asset management team. Joel Kaul, former head of ResCap REO management, will lead the company's residential asset management group.
ResCap is ranked as the fifth-largest mortgage servicer in the US. It continues to provide mortgage servicing and sub-servicing for a portfolio of approximately 2.6 million mortgage loans.
Established during the early 1990s in the wake of the Resolution Trust Corp. era, Mountain Funding hopes to leverage its prior experience during the current market crisis, Fioretti says. The company has additional offices in Atlanta, Los Angeles, Minneapolis, Washington, DC, Scottsdale, AZ and Richmond, VA.
Mountain Special Servicing now claims approximately 90 assets under management in 20 states, ranging from residential lot development to condos and apartments, totaling at least $1 billion in unpaid principal balance. The company says it is capitalized to invest $1 billion over the next few years in distressed debt and property for its own account.
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