Insights from ABS East 2024

I hope everyone has had a productive October! As we shared on September 3, ECN Capital Corp. (TX:ECN) and I, made a strategic investment into Paramount Capital Group dba Paramount Servicing Group, to operate as a servicer for ECN’s RV and Marine business, and work with other ECN companies, as well as the continuation of Paramount’s growing 3^rd party private label servicing offerings and backup servicing opportunities. I have returned from my consulting/ advisory working with ECN Capital to become the Chairman of Paramount and will be leading the go to market efforts throughout the US and Canada.

I wanted to provide you with a quick update as we are off and running, having converted 3 portfolios in the past few weeks, been mandated, and closed on multiple backup servicing agreements, performed a contract verification this week on 4,000 loans in under 4 minutes using our new Paramount + Verification engine. In addition, we had over 130 people attend our kickoff breakfast in NYC on September 24, and just came up for air from ABS East, where we had over 50 meetings.

One of the major topics coming from our meetings has been the need “to diversify your counter party risks”, especially on backup servicing as 2 servicers currently have over 60% of the backup mandates. Concerns have risen that if we experience a repeat of 2008/09, that these two servicers would not be able to handle multiple “trigger/ successor” events and would not be able to protect the capital on these loans. Contact us and let us help you navigate with a basic, enhanced, or parallel backup plan, that the rating agencies are excited about.

We look forward to once again connecting and working together!

Larry Chiavaro
Executive Chairman
Paramount Servicing Group