Hunt Valley-based PHH Corp. will help the federal savings-and-loan cleanup agency unload 929 Texas homes under a contract that could open the door for millions of dollars of future government business.
The Resolution Trust Corp. announced yesterday that it ha awarded the contract for disposition of the properties to PHH Asset Management and Southwest Harvard Group, a Hispanic-owned asset management company. The homes are either in conservatorship or receivership under the RTC Dallas office.
While the initial portfolio of homes is valued at $51 million, the deal is what is known as a "bucket contract," under which the RTC will refill the "bucket" with new properties as more come under its control. The contract could cover the sale of up to $500 million worth of single-family houses over its three-year term. The PHH-Southwest Harvard team will collect an undisclosed management fee on each of the properties.
Beyond the original contract, one of the largest awarded so far by theRTC, the possibilities are "absolutely just staggering," said Keith Bisogno, a spokesman for PHH Asset Management, a unit of PHH Homequity.
"Absolutely, it's a foot in the door to work more closely with the RTC," Mr. Bisogno said.
PHH Management Group was launched last year with an eye toward putting the real estate management experience of PHH's residential relocation division to work in the S&L; cleanup.
Teresa McUsic, an RTC spokeswoman, said that while she had no concrete estimate of the value of residential property still to be sold off, the amount would likely run in the billions. She said that PHH's experience in handling its first contract could be an advantage in bidding for future RTC management contracts.