XSite Validation, a real estate technology firm based near Detroit, has rolled out a new banking industry tool that evaluates the toxicity of commercial property loans within a portfolio.
The program ranks performing, non-performing and real estate owned (REO) properties from first to worst, BEST TO WORST? as it assesses the concentration of types of properties within the portfolio. It also provides a best-use evaluation of loan portfolio properties by proposing potential uses for each property.
Some lenders have already used the toxicity analysis to stabilize and revitalize their commercial real estate loan portfolios, XSite reports. Bill Pilkington, executive vice president of Michigan-based Warren Bank, a former regulator with the Federal Reserve Bank, said the analysis showed which properties needed further scrutiny for later sale or repurposing.
“This has resulted in a higher ROI [return on
For each property in a