Profits Are Up for Independent Mortgage Banks in 2019

WORLD PROPERTY JOURNAL | June 07, 2019

According to the Mortgage Bankers Association's newly released Quarterly Mortgage Bankers Performance Report, U.S. independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a net gain of $285 on each loan they originated in the first quarter of 2019, up from a reported loss of $200 per loan in the fourth quarter of 2018. "Independent mortgage bankers experienced improvements in the first three months of the year. This was a welcoming sign following a very difficult end of 2018, in which profitability reached its lowest level since our survey's inception in 2008," said Marina Walsh, MBA's Vice President of Industry Analysis. "Mortgage application volume picked up strongly towards the end of the first quarter as rates dropped, increasing the pipeline of loans for the second quarter. Given the drop in rates, lenders also enjoyed a boost in secondary marketing gains."

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GlobeSt. Real Estate Forum Names GID Industrial among its Influencers in Industrial Real Estate

prnewswire | September 14, 2023

GID, a real estate owner and fiduciary that invests in multiple asset classes, has announced that its industrial team, GID Industrial, has been named a 2023 Influencer in Industrial by GlobeSt. Real Estate Forum. This award recognizes distinguished individuals, teams, and companies for notable achievements within the industrial real estate sector. "GID Industrial is honored to receive this prestigious recognition," says Rene Circ, co-head of GID Industrial. "In the three years since we formed our team, we have built an impressive portfolio that has sustained occupancy and offers potential for continued rent growth. We aim to continue our portfolio expansion, targeting opportunities that offer strong potential for long-term growth." GID has been active in the industrial sector since 1986 and officially launched its industrial platform in 2020. In the three years after the platform's launch, the team has accomplished significant growth within the sector, executing stabilized, value-add, and development transactions. This diverse mix allows the team to provide its partners with investment opportunities tailored to their unique risk and return preferences. The platform currently operates more than 25M square feet of industrial space in top markets across the country. "GID Industrial's key differentiator is the expertise and passion of our team," says Michael Wenaas, co-head of GID Industrial. "With 30 individuals boasting an average of 21 years of experience in the sector, our team is well equipped to provide unique value to our partners by offering a practiced, holistic perspective on the state of the industry. Our achievements over the last three years are a credit to the powerhouse team that we have assembled." GlobeSt. Real Estate Forum Influencers in Industrial are selected by its editors based on nominations that outline the nominee's accomplishments and impact on the sector. About GID GID is a leading real estate investment and management firm that operates a diverse portfolio of multifamily, industrial, and mixed-use developments across the United States. With over 60 years of experience across multiple asset classes, GID is an established real estate private equity investor and fiduciary supported by an integrated operating platform with approximately 54,000 multifamily units and over 25M square feet of industrial and commercial space of assets under management. The company also operates a credit platform that aims to provide commercial real estate debt solutions for institutional borrowers.  With corporate offices in Atlanta, Boston, Dallas, New York City, and San Francisco, GID employs over 1,200 real estate professionals and operates an expansive portfolio of existing and under-development properties valued at over $30.1 billion1 as of June 2023.    1 Assets Under Management is calculated in compliance with the definition for Assets Under Management ("AUM") prescribed in INREV's Global Definitions Database.

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Market Outlook, Real Estate Investment

BSI Financial Extends Sagent Software Partnership 7 Years to Speed Growth to 1 Million Loans

Businesswire | July 13, 2023

Sagent, a Warburg Pincus-backed fintech software company modernizing mortgage servicing for banks and lenders, today announced a seven-year partnership extension with BSI Financial Services to continue powering its enterprise mortgage servicing ecosystem. As BSI Financial rapidly grows its servicing portfolio to a goal of 1 million loans, they’ll continue to leverage the industry’s only enterprise and default servicing platforms synced by real-time data. “Renewing our Sagent partnership is a key part of our goal to grow to 1 million loans with operational precision and cost control,” said BSI Financial founder and CEO Gagan Sharma. “We’re firmly committed to promoting sustainable homeownership for every borrower, and Sagent enables us to provide proactive, informed customer service to borrowers throughout their homeownership lifecycles.” BSI Financial will continue to power scale servicing operations with Sagent’s configurable, cloud-based platforms, including LoanServ (system of record), TEMPO (default management), Datascape+ (cloud-based data reporting and insights), and LoanBoard (originations-to-servicing onboarding). “BSI Financial has earned its reputation as a leader in clean, day-one-compliant onboarding and an AI-led approach that ensures data integrity and compliance in their own $50B portfolio and in their clients’ portfolios, and Sagent is honored to continue powering this industry-best experience,” said Dan Sogorka, CEO and President of Sagent. “BSI and Sagent have worked together to automate complex high-volume tasks for BSI, solve customer issues fast, and adapt in real-time to regulator and investor needs. Collaborative partnerships like this guide Sagent’s roadmap for the future of servicing and help us to set the mortgage fintech pace with our cloud-native, open-API servicing platforms.” With over $2T in outstanding mortgage balances on its platforms, Sagent and its customers collaborate on open-API models that ensure servicing operations are aligned with cost control, optionality, and real-time policymaking. Sagent has the industry’s only enterprise, default, and consumer mortgage servicing platforms synced by real-time data. This is the latest in a series of Sagent moves to transform the homeowner experience for financial orgs servicing millions of consumers with trillions in mortgage balances. About Sagent Sagent powers America’s top bank and nonbank lenders to engage, care for, retain, and modernize the homeownership experience for millions of borrowers. Servicers use our flexible, scalable, and configurable solutions to engage borrowers and earn customer loyalty, lower servicing costs, ensure compliance, and increase the value of servicing rights throughout full market cycles. Sagent is backed by Warburg Pincus, one of the world’s leading private equity investors, and powers trillions in outstanding mortgage servicing for its customers. Visit sagent.com to learn more. About BSI Financial BSI Financial Services is leading the evolution of mortgage servicing for originators, investors and homeowners. The company brings together a talented team with long mortgage industry expertise, scalable digital capabilities and deep regulatory understanding. BSI Financial is one of the fastest growing mortgage servicers across the industry and currently services more than $50 billion in mortgages. The company is approved as a servicer by Fannie Mae, Freddie Mac, FHA and VA, approved as an issuer by Ginnie Mae, and rated by S&P and Fitch as a servicer. For more information, visit bsifinancial.com

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Real Estate Investment

Roc360 Announces Additional Capital Sources

PRnewswire | August 21, 2023

Roc Capital Holdings LLC ("Roc360", the "Company"), a vertically integrated platform for residential real estate investors and a leading originator of business-purpose loans, and Temasek, a global investment company headquartered in Singapore, today announced the launch of Roc360 Real Estate Income Trust Inc ("Roc360 REIT"). The externally managed mortgage REIT will invest in business purpose loans for residential real estate investment properties principally originated by Roc360. Since its founding, Roc360's core focus has been to connect the highly fragmented business of residential investment property lending with institutional capital through an "originate-to-sell" business model. The formation of the Roc360 REIT establishes Roc360's presence as an asset manager, which will enable the Company to further diversify its base of committed capital to enhance the certainty of capital for its borrowers. "As demand for our assets has increased, we view the Roc360 REIT as an opportunity to secure more funding for our customers by diversifying our range of capital sources," said Arvind Raghunathan, Ph.D., Roc360 Founder and Chief Executive Officer. "We are honored to partner with Temasek on this important endeavor, which will have a beneficial impact on our customers' ability to scale their businesses in combating the shortage of affordable, energy efficient homes in this country." The partnership between Roc360 and Temasek highlights the continued interest in US residential real estate from the international investor community. "This year, we have taken a number of steps to grow our origination capabilities both organically and via acquisitions. As such, we view the Roc360 REIT as a natural extension of our platform, which binds best-in-class origination capabilities and diverse, committed and scalable capital through technology and data which provides our borrowers certainty of execution and a streamlined process. We are excited to provide an alternate funding model for this segment of the industry outside of whole loan purchases and securitization markets," said Maksim Stavinsky, Co-Founder and President of Roc360. In addition to the REIT, Roc360 will maintain and expand its existing loan purchase programs and asset management solutions to accommodate its growing origination footprint.Deutsche Bank Securities Inc. served as sole structuring agent for this transaction. About Roc360 Roc360 is a leading financial services platform for residential real estate investors, providing vertically integrated solutions, including lending, servicing, insurance, and valuation. Founded in 2014 by Arvind Raghunathan, Maksim Stavinsky and Eric Abramovich, Roc360 employs over 300 people and its wholesale and retail brands have funded in excess of $25 billion in loans throughout the United States since inception. The company is headquartered in New York City with offices on three continents.

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Real Estate Technology

Tango, Leading Provider of Cloud-Based Real Estate and Facilities Management Software, Acquires WatchWire

Globenewswire | August 14, 2023

Tango, a leading provider of cloud-based real estate and facilities management software, today announced it has acquired WatchWire, an industry leader in data and analytics that helps companies reduce emissions and energy expenses while simplifying sustainability and carbon reporting. The transaction further extends Tango’s position as a global leader in the real estate and facilities management space, enabling companies to meet their energy management and sustainability goals. WatchWire’s leadership team will join Tango to continue developing and progressing these key capabilities. Financial terms of the private transaction were not disclosed. “Faced with a rapidly changing macro and regulatory environment, active sustainability and energy management has become essential to long-term organizational success,” said Pranav Tyagi, President and Chief Executive Officer of Tango. “Tango has a longstanding reputation for solving the complex, location-based compliance and reporting needs of our customers, as well as helping companies effectively manage and control occupancy costs. With the addition of WatchWire, we will provide customers information that arms them to understand their environmental impact and deliver on energy and sustainability management initiatives.” Founded in 2000 and based in New York City, WatchWire provides the deepest and most comprehensive integrated energy management and sustainability platform in the industry, enabling companies to automate the collection and validation of sustainability and energy related data. Its solutions then operationalize the data for reporting, compliance and identifying additional opportunities to meet environmental, energy and climate targets. The combined business will serve over 500 customers in more than 140 countries from its primary offices in Dallas and New York. A strong relationship between owners and the users of real estate is critical to ensuring accurate, active tracking and reporting on energy and sustainability. Tango brings considerable experience to the establishment and management of that relationship through its work in transaction management, lease management and facilities maintenance, and will help bridge the communication gap between owners and operators to address their joint energy and sustainability management requirements and deliver on decarbonization objectives. “We are excited to be joining the preeminent real estate and facilities management solution in the industry,” said Andy Anderson, CEO of WatchWire. “Combining the vast amount of validated energy data available in the WatchWire platform with Tango’s real estate and facilities management capabilities will enable companies to support the accurate tracking and reporting that customers require, and operationalize insights about how to lower costs and improve sustainability. WatchWire customers will also benefit from the end-to-end real estate and facilities solution that Tango offers.” “Since our initial investment in Tango, we have been focused on adding a sustainability and energy reporting capability, as these offerings will help Tango extend its leadership position in the real estate management software market,” said Jon Nuger, a Managing Director at Berkshire Partners, which made a growth investment in Tango in 2021. “We are excited to partner with Pranav and the management team as they harness Tango’s and WatchWire’s combined capabilities to empower organizations to improve energy efficiency, enhance sustainability and reduce cost.” Harris Williams acted as exclusive financial advisor to Tango and Berkshire Partners on the acquisition of WatchWire. GrowthPoint Technology Partners, a San Francisco-based technology investment bank, acted as exclusive financial advisor to WatchWire. About Tango With hundreds of customers across more than 140 countries, Tango is the leader in Store Lifecycle Management and Integrated Workplace Management System software, delivering a single solution spanning real estate, design & construction, lease administration & accounting, facilities, desk booking, visitor and space management. About WatchWire WatchWire is a sustainability and energy management software-as-a-service provider. Across the globe, WatchWire helps commercial and corporate real estate portfolios, Fortune 500 industrial/manufacturing and big-box retail companies and government, healthcare, and educational facilities reduce emissions and expenses while simplifying sustainability and carbon reporting. About Berkshire Partners Berkshire Partners is a 100% employee-owned, multi-sector specialist investor in private and public equity. The firm’s private equity team invests in well-positioned, growing companies across technology & communications, consumer, healthcare, and services & industrials. Since inception, Berkshire Partners has made more than 150 private equity investments and has a strong history of collaborating with management teams to grow the companies in which it invests. The firm's public equity group, Stockbridge, founded in 2007, manages a concentrated portfolio seeking attractive long-term investments. The firm’s Stockbridge and Private Equity teams frequently collaborate and leverage their collective industry expertise across sectors.

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