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Much appreciated! Now I'm wondering what kind of business model Agency Y and Z operate on
by namank 14y ago
Much appreciated!
Now I'm wondering what kind of business model Agency Y and Z operate on
- patio11 14y agoA variation of "Buy debt at 25 cents on the dollar, collect 40 cents on the dollar in interest and fees, spend 8 cents on the dollar for high school graduates to man the phones and 5 cents on the dollar for overhead.", with numbers adjusted depending on how toxic their average pool of receivables is.
- intended 14y agoIf I recall correctly, during the robo signing debacle - some banks ended up losing control/chain of ownership on those mortgages. So in that subset of cases no one even legally owns the debt, (but the banks still tried to assert control. IIRC the judicial system didn't take too kindly to their assertion)
- namank 14y agoInteresting, thanks.
- tsotha 14y agoThey actually collect on some small portion of the debt, which, along with the sale of the remaining obligations, ends up being enough to pay their expenses and produce some amount of profit.