Kingsley Greenland Presides Over DebtX's Marketplace for Loans

The Debt Exchange, better known as DebtX, is drawing national interest from investors seeking to buy loans, including distressed commercial mortgages.

“What we're doing is a marketplace, so we're not providing capital, we're enabling capital to get to the product,” says Kingsley Greenland, president and CEO of Boston-based DebtX.

“It's a place where people can conduct business in a regular and cohesive manner,” he says. “We think of it as an exchange.”

The company also determines values for loans based on market conditions. “We price over $800 billion of commercial real estate mortgages a month. That's an astronomical number,” says Greenland.

DebtX has more than 6,000 registered investors and 300 selling institutions that range from commercial and investment banks to insurance firms and government-sponsored enterprises.

Besides providing the online marketplace and information on loan values, the company markets loans and assets to potential buyers through aggressive e-mail and telephone campaigns. For instance, the firm has marketed commercial real estate and other loans for a regional bank with $52 million in assets.

“We package, we market and we underwrite the loans. We go through extensive exercises to make sure that all the data is in a consistent format for buyers so they can get through more data more quickly,” says Greenland.

When lenders approach DebtX for help in selling non-performing or distressed loans, company and client must reach an agreement on price. “We don't take any assets to market unless we agree on price because we believe [an inappropriate price] damages the buyers,” the CEO says.

The Federal Deposit Insurance Corp. is a big customer, and often uses the service after liquidating a bank, says Greenland. Going forward, he expects the business to expand as more investors hunt for bargains.

DebtX has invested a great deal of time and effort in technology to provide buyers and sellers with information on loans and values through its Web site, www.debtx.com, Greenland says. “We sell more [online loans] than anybody so we see what's happening in the market.”

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish