Should servicers still be outsourcing REO disposition?

As the foreclosure crisis continues to shrink in the rearview mirror, many in the mortgage industry are starting to breathe easier. Default rates have been dropping steadily and most forecasters expect that trend to continue. By all accounts, our industry is moving well into the recovery. However, for some players, including the nation’s banks and capital markets investors who have invested heavily in distressed loan portfolios, this is misleading.