The company offers brokerage services for lenders expecting a downturn due to COVID-19
In an effort to help commercial lenders minimize future damage arising from the coronavirus pandemic, Eastern Union has launched its Distressed Notes Initiatives to find investors interested in buying troubled mortgages.
The commercial real estate finance firm plans to tap into its extensive database of investors to help community banks and private debt funds find buyers for distressed debt.
"We understand what lenders need, and we will serve their best interests," said Abe. Bergman, co-founder and managing partner of Eastern Union. "At the same time, we have strong and well-established business relationships with vast numbers of investors. Many will be willing to take troubled loans off of lenders' hands."
Bergman said that several lenders foreseeing liquidity issues due to COVID-19 recently reached out to Eastern Union, saying that they need brokerage assistance in selling off troubled loans. This prompted the company to launch the Distressed Notes initiative, he said.
"We know exactly how lenders think during these types of downturns," Bergman said. "We are in constant contact with banks right now, and we understand their mindset during these challenging times. This creates a close level of communication that puts Eastern Union ahead of the curve and allows our team to anticipate what to expect next."