NCNB Texas, Standard Federal Win Big RTC Servicing Contracts
The Resolution Trust Corp. has awarded the lion's share of its biggest loan servicing contract to NCNB Texas and Standard Federal Savings Bank.
The unit of NCNB Corp. and the Maryland-based thrift will between them administer about $11 billion of the $13.2 billion contract, which is also the first big contract for servicing commercial loans in the RTC portfolio.
Equitable Gets a Share
Equitable Real Estate Investment Management, an arm of Equitable Life Assurance, will service the rest of the loans, which the Denver office of the RTC oversees.
With the contract, the Dallas-based NCNB unit and Standard Federal in Gaithersburg, Md., added to already substantial portfilios of work related to the thrift bailout.
The deal involves loans in a dollar amount sufficient to put a company in the top 20 servicers in the nation.
Fees May Top $15 Million
Taxpayer-supported fees will depend on the servicers' ability to manage and liquidate the collateral underlying about $7.6 billion of nonperforming loans in the portfolio.
Equitable and Standard Federal each estimated fees in excess of $15 million over three years. NCNB declined to comment before an official RTC announcement.
The deal is a departure from normal procedure because previous RTC sales have involved mostly residential loans. This portfolio consists primarily of commercial real estate loans and includes a small component of commercial loans, said Emmett "Randy" Garlock, chief executive of Standard Federal.
Thrift Services $11 Billion
Mr. Garlock said Standard Federal expects to service - or administer - about $6 billion worth of loans, bringing to $11 billion the face value of loans it services for the RTC. About $1.8 billion of the loans Standard Federal will service are in performing status; the rest are nonperforming.
That leaves about $5 billion of loans for NCNB, including $2.1 billion of performing loans and $2.9 billion of nonperforming loans.
