Nearly two dozen companies were awarded contracts to serve as asset managers on foreclosed properties owned by the U.S. Department of Housing and Urban Development, while even more contracts were handed out to field service managers. In excess of a thousand jobs are expected to be created as a result of the contracts.
Asset manager contracts were awarded to 23 companies, HUD said today. Asset managers are responsible for the sale of the property. Most areas will have multiple contractors, each with a local office.
In addition, another 32 firms were awarded field service manager contracts. Field service managers are responsible for property maintenance and preservation.
The housing agency made the move under the third generation of its Management and Marketing program — or M&M III. The revised program separates the maintenance and marketing of HUD real estate owned, which were previously handled by a single M&M contractor. HUD hopes the revisions will increase the effectiveness of the REO disposition program.
HUD has been outsourcing REO work since 1999. Its REO inventory stands at around 44,000 properties compared to its “usual” inventory of between 35,000 and 40,000 properties.
“The new contracts announced today are intended to reduce risk, increase sale prices and accelerate the pace of reselling HUD’s inventory of foreclosed FHA homes,” the statement said. “HUD developed its new M&M III disposition structure to streamline its operations, capitalize on the expertise of potential vendors and provide flexibility in a changing environment.”
HUD projects that 1,200 new, professional, U.S. jobs will be created as a result of the contract awards.
