In the last two years as a result of the mortgage crisis over 281 banks have been seized by the FDIC. The conservative banks during the mortgage boom are in a positive economic position to inherit Other Real Estate Owned (OREO) assets from failed institutions overseen by the FDIC. Consequently, as part of the acquisition process, they take on the requirements of managing, marketing and liquidating assets while reporting on a monthly basis with pinpoint accuracy, their current book values, write downs, net proceeds, expenses, taxes, and the overall ROI. When an asset changes hands often the old broken processes from the failed institution are also inherited. The parties involved with an OREO asset typically include the home owners, listing agent/broker, asset managers, vendors, and all are dramatically impacted by the new note holder’s policies and procedures in hopes to encapsulate some sort of reporting and systemization.
Managing minimal OREO assets requires a sophisticated software system to track and manage the entire OREO cycle and to provide the necessary dashboards for management to steer the direction of the portfolio. The software must be customizable to appropriately model the different processes and procedures for each bank and investment firm. TAZA is providing solutions at a fraction of the cost of other online programs, thus eliminating the overhead of internal or outsourced software development.
For example, it is not uncommon for assets with 9 different taxing entities to have tax bills due on different periods throughout the year. Fifty assets with complex tax requirements create a tax nightmare for any department. In addition, monthly physical inspections, photos, appraisals, repairs, commissions and other expenses would require a system feeding pertinent information to/from different internal departments, external vendors and finally, providing a complete picture. The executive team dashboards and monthly accounting reconciliation processes are full time jobs for banks and private investment firms using excel or any make-shift in house solution.
TAZA Systems provides banks, asset management firms and financial organizations managing OREO portfolios with a SaaS service that complies with the toughest security requirements. One essential component is a mandatory requirement for FDIC insured banks to provide a comprehensive audit trail of data and event changes to the FDIC at any time. FDIC audits must be fully automated by the software in a format that is usable by the FDIC. For example, emails exchanged for a specific decision are part of the audit trail, and attachments are included.
TAZA’s online OREO and special asset software offers user-friendly systems, enjoyed currently by banks, asset management companies and private investment firms. Innovations and ongoing development are driven by listening, understanding and adapting to the needs of each client. OREO Management Software with online access, custom reporting, dashboards and analytics offer reprieve from the outdated cumbersome processes. The systems are designed as Special Assets Software catering to Commercial OREO, Land and Residential REO Properties.
New clients leading this new market prospective and on the elite board for development include: First Citizens Bank, Rabobank, People’s United Bank, and Inter National Bank.