REO INSIDER

The inaugural Housing Intelligence Exchange was a resounding success for our members, as the first opportunity to connect, learn, and grow together as a network, surrounded by leading authorities and innovators from across all aspects of the housing finance industry.

At HIX, experts reaffirmed one clear message: the REO industry is entering a new cycle defined by speed, compliance discipline, AI-driven workflows, and data-transparent reporting.

Servicers, asset managers, and institutional buyers repeatedly emphasized the same operational requirements across sessions: faster turn-times, cleaner documentation, standardized communication, and credible digital transparency at every stage of the asset lifecycle.

REO volume is expected to rise heading into 2026, particularly as early-stage delinquencies increase and servicing environments tighten. Industry commentary confirms that agents who adopt modern systems, produce audit-clean documentation, and operate with predictable communication patterns will be positioned as top performers.

Across various discussions within REOX Connect and other Asset Resolution sessions, the message was consistent: the next generation of high-performing REO agents will differentiate themselves through operational discipline, AI-assisted accuracy, and the ability to produce reliable, formatted, standardized reporting at scale.

The Expo also highlighted the industry’s growing emphasis on agent safety, particularly in fieldwork involving first-entry inspections and remote property visits. Tools such as Tether were strongly encouraged for modern safety protocols.

Finally, a charitable note: your adopted charity for REOX is Operation Homefront, underscoring the REO industry’s ongoing support of military households and the communities we serve.

We look forward to sharing more about HIX 2026 in the very near future, including exclusive opportunities for our members to continue to grow, adapt, and thrive in a rapidly evolving REO market.

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This month, REOX welcomed Elsie Gomez, Asset Manager with PEMCO, to the REOX Webinar Series for a focused discussion on how agents can strengthen their REO readiness, build stronger partnerships with asset managers, and position themselves for long-term success in a shifting market.

With more than 21 years of real estate experience—spanning REO representation, acquisitions, and asset management—Elsie provided members with a candid look at what PEMCO values most in its agents, how to stand out in competitive markets, and why operational speed and communication are central to earning repeat assignments.

Understanding Today’s REO Landscape

According to Elsie, interest rates, inventory levels, and buyer behavior are shifting again—creating renewed opportunities for well-prepared agents. REO cycles always return, and the agents who adapt early—not reactively—are the ones who rise to the top.

Institutional investors are repositioning themselves, newer agents often pull back when markets tighten, and seasoned professionals lean in. For asset managers, the go-to agents are the ones who stay informed, anticipate local foreclosure activity, and remain ready for the next assignment.

What PEMCO Looks for in Agents

Elsie was clear: relationships in REO are built on communication, responsiveness, and reliability.

Be responsive.

When an asset manager makes contact, time matters. Elsie emphasized that if an agent doesn’t answer or respond quickly—even to a text—she must move on to the next agent. Responsiveness is often the difference between winning and losing an assignment.

Be proactive.

Agents who provide HOA details, note violations, identify condition issues, send walk-through videos, or gather repair estimates before being asked demonstrate the professionalism PEMCO seeks. Proactive communication helps asset managers stay ahead of delays and reduces surprises once a property goes live.

Be solution-oriented.

PEMCO values agents who bring options, not obstacles. Whether it’s vendor issues, pricing challenges, or condition concerns, Elsie encouraged agents to openly communicate what they’re seeing and suggest practical next steps.

The Details That Matter

Throughout the webinar, Elsie highlighted several practical reminders that help agents perform at a high level and support PEMCO’s expectations:

Photos and Presentation

• Listings should include multiple, high-quality photos, interior and exterior.
• Poor orientation, missing interior images, or outdated vegetation maintenance significantly affect days on market.
• A clean presentation—even on distressed properties—helps drive traffic and faster contracts.

Pricing and Market Feedback

• Agents should align on price at the outset, then recommend adjustments with clear justification.
• Elsie prefers a 21-day checkpoint: if a property is not moving, provide data, comps, and reasons to support a recommended reduction.
• Sudden, unexplained price drops—especially large ones—cause breakdowns in communication and trust.

Vendor Management

• Agents select their own preservation vendors, and vendor performance reflects on the agent.
• Proactive updates about delays, poor-quality work, or the need to switch vendors are encouraged and appreciated.

Performance and Turnaround Time

Turnaround time is one of PEMCO’s most important performance metrics. Agents who demonstrate readiness—vendors in place, checklists established, inspections pre-scheduled—consistently close faster and earn repeat opportunities.

Elsie noted that agents who text quick updates, send photos, and maintain clear communication throughout pre-marketing and listing phases create smoother closings and stronger long-term relationships.

Coverage Areas & Platform Information

PEMCO maintains an active and expanding network, particularly in rural markets where agents can be difficult to locate. Agents interested in joining—or reinstating their place—should email Elsie with detailed coverage areas, including specific cities, counties, and distance ranges.

• Subject line suggestions: “New Agent Boarding – [Market]” or “Reinstatement – [Name/Market]”
• Platform: PEMCO uses ResNet, though some assignments are handled via email with a fillable BPO form.
• Preservation: All property preservation tasks are performed by the agent’s chosen vendors.

Elsie shared that PEMCO is currently active or building coverage in several states, including Texas, Georgia, Florida, Illinois, New Jersey, South Carolina, Maryland/DC, Michigan, New Mexico, Oklahoma, Oregon, and others.

Opportunity Ahead

Elsie emphasized that PEMCO continues to grow its network and frequently shares trusted agents with other asset management companies. With market conditions evolving and an upcoming auction cycle later this year, additional opportunities are expected.

Agents who stay responsive, detailed, and proactive will not only earn assignments—they will become long-term partners PEMCO can rely on as inventory shifts.

Final Word

Elsie’s message was clear and encouraging: success in REO comes down to communication, preparedness, and professionalism.

Agents who answer quickly, provide thorough documentation, and maintain strong vendor and marketing systems are the ones who rise to the top—and stay there.

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Delinquency rates on government-insured mortgages are climbing, signaling incremental stress in segments of the housing market that matter for REO inventory and disposition timelines.

The Key Numbers

At the end of September 2025, mortgages insured by the Federal Housing Administration (FHA) in Ginnie Mae MBS pools had a delinquency rate of 10.90%, up 51 basis points from the end of June.

Meanwhile, mortgages backed by the Department of Veterans Affairs (VA) recorded a delinquency rate of 4.37%, an increase of 9 basis points over the same period. 

Within these totals:

• For FHA loans, 30-day delinquencies accounted for the largest share of late payments (5.38%).
• For VA loans, the 90-day+ category was the only delinquency bucket that declined (from 1.64% to 1.60%). 

What’s Driving the Shift

Several underlying factors appear to be contributing to this rise in delinquencies:

• Elevated mortgage rates and higher monthly payments, especially for borrowers with adjustable or interest-reset loans.
• Increased homeownership costs—insurance, taxes, utilities, maintenance—placing additional financial strain on borrowers.
• The relatively thinner cushion of equity or savings for certain borrowers, leading to less buffer against payment shocks.

Why This Matters for REO Professionals

For those working in REO, asset resolution and default servicing, this data provides several strategic cues:

• Potential Inventory Signals: Rising delinquencies often precede increased default activity and asset disposition. Agents and brokers should be alert to emerging portfolios of FHA/VA loans.
• Servicer Relationships Matter: As servicing risk rises for government-insured assets, servicers and investors will look for reliable, compliant REO partners who understand these pools.
• Speed and Preparedness Pay Off: Even modest upticks in late payments can shorten windows for action. Being pre-qualified, responsive, and visible can translate into earlier assignment opportunities.
• Geographic & Loan-Type Focus: While the overall delinquency rates are modest, pockets of stress may concentrate in specific markets or loan‐types—positioning early in those areas can create a competitive edge.

Strategic Takeaway

The current trajectory warrants close observation. Early indicators of strain are appearing within government-insured loan pools. For REO professionals who are proactive in building relationships and strategically positioning themselves, the evolving landscape could present strategic opportunities.

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For veteran broker and REOX Advisory Council member Laura Dietz, real estate has never been just about transactions—it’s about people, service, and showing up when it matters most. That’s why REOX is proud to share that Laura has received the State of California Senate Certificate of Recognition, awarded by The Exclusive Academy of Real Estate Professionals. The honor celebrates her decades of dedication, her service to the community, and her relentless passion for helping others succeed.

A Career Forged in Resilience

Laura’s real estate journey is as extraordinary as it is inspiring.

Imagine losing your home in the California earthquakes—and just three days later, losing your husband.
Two monumental devastations in the same week could have stopped anyone in their tracks. But Laura kept going. She pushed forward, working foreclosures in the trenches and discovering firsthand that in real estate, adaptability isn’t optional—it’s survival.

“Because of need, you have to continually adjust in real estate,” she explained. “Agents are in the service business.”

Service Beyond the Sale

That philosophy has defined her career. Laura is disaster-trained, and during the Los Angeles wildfires, she stepped in when a client—facing both the loss of his home and urgent open-heart surgery—was left stranded in a hotel. The doctor wouldn’t operate until he had permanent housing, but the criteria for that home were daunting. Laura made it happen.

Stories like these are why the State of California recognized her. For decades, she has been “boots on the ground,” helping families navigate impossible circumstances—whether fire, foreclosure, or personal tragedy.

A Legacy of Community and Mentorship

Laura’s roots in Burbank run deep—her family has lived there for over 105 years—and she pours herself into community programs, especially those that support kids. Her office, staffed by women who work from home so they can raise their families, is a safe haven as much as it is a business.

“You need to be that safe place they can come to,” she says. “I love this job. I love being involved.”

For Laura, success has always been measured by the lives she touches. Recognition from the State of California is rare, which makes this honor all the more meaningful. It validates not just her career, but the heart she brings to the industry every day.

Why She Matters to REOX

It’s not just clients who need support. As Laura explains:
“Some agents can’t make a living. Some just don’t know what to do. It’s not about the money—it’s about service. We’re supposed to help the other agents.”

As a member of the REOX Advisory Council, Laura brings that same spirit of service and resilience to her peers. Her story is a reminder: keep moving forward, continually pivot, and always help others.

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This month, REOX welcomed Labrescia Dawson, President & CEO of Dawson’s Management, and Marcia Toms, the firm’s Program Manager, to the REOX Webinar Series for a detailed discussion on how agents and brokers can work effectively within USDA Rural Development’s REO programs.

As a national vendor under the USDA’s National Default Management Services (NDMS) contract, Dawson’s Management provided members with a clear view of how USDA assets move from foreclosure to final sale—and how agents can stand out in the process.

Understanding the USDA REO Flow

Dawson’s oversees the full default-to-REO process—including foreclosure, bankruptcy, eviction, appraisal, preservation, and disposition. In short, Dawson’s manages properties “from cradle to grave.”

For agents, that means assignments often begin before a property is ready for listing. Quick occupancy checks, accurate condition reports, and consistent monthly inspections are critical to keeping the process moving smoothly.

What Dawson’s Looks for in Agents

Success with Dawson’s—and with USDA assets overall—comes down to reliability, professionalism, and communication.

• Be responsive. Agents are expected to accept or decline assignments within 48 hours and to remain reachable throughout the process.
• Be proactive. Reporting issues early—such as occupancy, access, or title complications—builds trust and efficiency.
• Be thorough. Timely inspections, accurate valuations, and well-organized submissions help maintain consistent performance scores.

The Details that Matter

Dawson’s shared several practical reminders to help agents avoid common pitfalls:

• Broker Price Opinions (BPOs):
  
  • Submit the initial BPO within five days, and update every 60 days while listed.
  • Use commentary to explain market conditions or justify adjustments—context matters as much as the number.
• Photos and Field Work:
  
  • Inspection photos should be date-stamped and document the property thoroughly.
  • Marketing photos should be high-quality and clean, without date stamps, clutter, or orientation errors.
  • Seasonal refreshes are encouraged to keep listings accurate and appealing.
• Platform and Paperwork:
  
  • All assignments flow through Equator—no zip code purchases are required.
  • Licensing and E&O insurance ($1M minimum) must remain current in your profile.
  • Contracts and Master Listing Agreements (MLAs) are handled via DocuSign, not state forms. Ensure unique emails for each signer to avoid delays.

Performance & Professionalism

Agent performance is tracked through several key metrics:

• On-time inspections and task completion
• Accuracy and timeliness of BPOs
• Days on market and days to close
• Clear communication with asset specialists

Agents who stay responsive and engaged often retain listings beyond the standard 60-day window—and are prioritized for future assignments.

Opportunity Ahead

While Dawson’s activity is currently strongest in Texas and Georgia, additional states will come online as USDA transitions more assets to REO. Remote or rural markets like Alaska and Wyoming also present opportunities for agents willing to expand their coverage or obtain additional licenses.

How to Get Started

• Visit dawsonsmanagement.com → USDA NDMS Vendor Sign-Up → Broker/Agent Sign-Up (redirects to Equator).
• Keep your Equator profile current—especially your contact email, license, and E&O information.
• Join Dawson’s private Facebook group to hear about new state opportunities, certification sessions, and training events first.

Final Word

Dawson’s message was consistent and encouraging: success in USDA REO is about professionalism, communication, and follow-through.

Agents who stay responsive, meet deadlines, and provide quality documentation will not only secure assignments—but build long-term partnerships that grow with the market.

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Artificial Intelligence is making waves in nearly every industry, and real estate is no exception. A new study tested whether Large Language Models (LLMs)—the same AI technology powering tools like ChatGPT—could perform real estate valuations.

The verdict? While not yet a 1-for-1 replacement for human expertise, AI is rapidly developing in its use cases, accuracy in modeling, and platform integrations.‍

Researchers found LLMs could generate valuation estimates that, in some cases, came close to professional appraisals. However, performance varied widely depending on data quality, property type, and the complexity of local market factors.

‍Key Takeaways for REO Professionals

• Speed vs. Precision: LLMs can process and summarize large datasets quickly but may miss hyper-local nuances that drive value.
• Data Dependency: The accuracy of AI valuations hinges on the quality and completeness of the underlying property data. While this is improving, a lot of filtering is still required to offset gaps in intel.
• Augmentation, Not Replacement: In the near term, LLMs are best used to support—not replace—human appraisers, especially for unique or distressed properties where condition and neighborhood insight matter most.

Expert AI Insights this Fall‍

The reality is that, as LLMs continue to evolve, understanding AI tools and utilizations will soon be mission-critical to continued success. This is exactly why REOX has aligned with the Housing Intelligence Expo this November, with exclusive expert insights solely for our members. For more information and to register, visit TheHousingIntelligence.com.

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The second quarter of 2025 brought a shake-up in the non-agency mortgage-backed securities (MBS) servicing race. After slipping behind Select Portfolio Servicing (SPS) earlier in the year, Newrez/Shellpoint rebounded to the top spot, handling servicing on $9.47 billion in non-agency MBS issuance—a 36.1% jump from Q1.

In total, the quarter saw $30.29 billion in non-agency MBS issued, up 20.5% from Q1. That figure includes seasoned mortgages and underscores a broader market resurgence in securitization activity.

SPS also posted gains, servicing $8.34 billion in new non-agency MBS, an 11.4% increase from the prior quarter. Both servicers represent a mix of issuers and continue to hold strong market positions.

What This Signals for REO Professionals

While headline competition centers on Newrez and SPS, the real takeaway for REO insiders is the growth trajectory in non-agency MBS issuance. Rising issuance can ultimately translate into:

• More Complex Portfolios: Non-agency pools often carry unique loan types and credit profiles, which may result in different default and resolution patterns compared to agency-backed loans.
• Future Distressed Supply: As issuance ramps, the performance of these assets will shape future pipelines of non-agency REOs, particularly if economic pressures test borrower resiliency.
• Servicer Relationships Matter: Both Newrez and SPS are major players. Building visibility with these servicers could position members for assignments if non-agency distress surfaces more meaningfully in coming quarters.

The Takeaway

Servicing leadership shifts may grab the headlines, but for REO professionals, the story is about momentum.

A 20% quarterly surge in non-agency issuance points to growing activity in a corner of the market that, historically, has been more volatile. The professionals who recognize where today’s securitizations could become tomorrow’s opportunities will be best prepared to capture value when those assets cycle into REO.

This November, the Housing Intelligence Expo is set to inform and equip leaders for the future of housing finance—including an entire day of expert-led sessions centered around REO.

REOX members are invited to join fellow leaders, servicers, asset managers for this uniquely designed inaugural conference. From industry-wide updates and REO Next, to the member-exclusive REOX Connect, REOX Bash, and more, attendees will engage in a highly curated experience designed to equip them with the strategies needed to thrive in an evolving REO market.

Featured REO Topics

Attendees will engage with experts on critical topics, including:

• The Shift in Default Markets | Macro trends in foreclosure, asset acquisition, and FHA/VA shifts—plus a look at pipeline expectations and field readiness.
• The Real-Time REO Playbook | How asset managers are redefining speed, compliance, and neighborhood preservation in 2025.
• GSE & Institutional Buyers Outlook | Investor appetite, affordable housing mandates, and institutional acquisition trends.
• AI & the Future of REO | How smarter valuations, faster turns, and AI tools are transforming operations while enhancing—not replacing—agent expertise.
• Servicer + Agent Synergy in 2026 | New expectations for agent responsiveness, digital compliance portals, escalation workflows, and property condition metrics.
• REOX Advisory Council Insights | Candid perspectives on compliance, AI, vendor standards, and what’s next in asset resolution and pre-foreclosure.
• The Road Ahead | Rising delinquencies, fragmented opportunities, and the compliance challenges shaping REO success.

Members-Only Benefits

• REOX members receive exclusive access, including:
• REOX Connect – Private expert-driven summit with servicers and asset managers
• The REOX Bash – Continued connections in an elevated, celebratory setting
• Exclusive Curriculum – members-only sessions not available anywhere else
• Lowest Rate – Unlock this special rate solely for REOX members

Be Part of the Moment

Act now to meet with decision makers, gain insider knowledge, and prepare for the shifts ahead. Secure your spot today at the fall’s must-attend REO conference.

For more information and to register, visit TheHousingIntelligence.com.

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A Sneak Peek into your Opportunities this November‍

With HI Expo debuting this fall, the REOX team is hard at work to make this inaugural event unforgettable for our members.

These carefully curated gatherings provide the perfect environment to build relationships, share ideas, and gain unprecedented access to experts and decision makers—all within a members-only setting.

Exclusive REOX opportunities at HI Expo:

• REOX Connect: You’re invited to join fellow members, servicers, asset managers, and experts at this private and inaugural summit. Featuring timely keynotes, dynamic discussions, and tableside conversations, REOX Connect is the place to gain facetime decision-makers across the industry.
• The REOX Bash: This evening social event will follow on the heels of REOX Connext, and offers another exclusive opportunity to mix, mingle, and celebrate with fellow members, speakers, and industry partners. Enjoy live music, hors d'oeuvres, and libations in an elevated atmosphere.
• Exclusive Curriculum: Designed as an off-shoot of the Transaction Resolution Pillar, REOX members will receive additional, highly relevant expert content that will be fully unavailable to non-members.

No additional work is required for you to participate in these tailored opportunities; as an REOX member, your access is included with your registration.

Attend HI Expo at the Locked in Lowest Rate

Another exclusive for REOX members, you’re invited to reserve your ticket for HI Expo at the lowest rate, beating even early bird pricing. Best of all, your rate won’t change—whether you book today or two months from now—enjoy the same exclusive discount even as prices increase for non-members.

However, to ensure your choice of accommodations at one of our partnering hotels, we do recommend registering early, as that information will be shared with registered attendees soon, allowing for early access to your choice of partnering hotel at the lowest rates.

To register and for more information, visit TheHousingIntelligence.com.

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