There is a widespread shift happening in the mortgage industry. Mortgage servicers and REO asset management companies that once thrived after the foreclosure crisis are revamping their image, business practices, and even changing their name in order to adapt to the strengthening real estate market.
As the amount of distressed inventory continues to wane, companies like Nationstar Mortgage Holdings , Ten-X (formerly Auction.com), and Altisource Portfolio Solutions , are expanding into other areas of the market to avoid extinction.
An article from the Wall Street Journal by Joe Light referred to the switch-up among these companies as an "identity crisis" as they alter their businesses to separate their foreclosure-related past from future opportunities.
Ed Delgado, President and CEO of the Five Star Institute , a provider of education and training programs for the mortgage industry, told Wall Street Journal writer Joe Light that companies which are slow to adapt to the changing real estate environment may be in trouble.
“There’s a risk of extinction for companies that are either slow to realize the change in the market or simply don’t adapt. You can expect to see both contraction and extinction of some of these organizations,” Delgado said.
The most recent company change comes from Nationstar Mortgage Holdings. In February 2016, Nationstar announced in its fourth quarter earnings statement call that it would be later rebranding itself to Mr. Cooper.
"Looking forward, we remain focused on taking steps that improve customer experience and drive customer retention while delivering greater value for our shareholders. We enter 2016 well positioned from a strategic, operational and capital perspective,” said Jay Bray, CEO at Nationstar.
Auction.com  in January rebranded as Ten-X  in order to reach further into the real estate marketplace. In addition to rebranding as Ten-X, the company also announced that it plans to introduce new platforms in March that will give sellers the option to choose either an auction or a non-auction process when conducting transactions online.
“Today's announcement represents something far more significant than a name change,” Ten-X CEO Tim Morse said. “Our move to the Ten-X brand reflects our evolution into a marketplace for a much broader range of residential and commercial property types, and our expansion into new technology solutions that empower buyers, sellers and real estate professionals alike. Our vision is to make buying and selling real estate ten times better for everyone involved.”
Altisource Portfolio Solutions,  a provider of mortgage, financial and technology services for the real estate and mortgage industries, expanded their offerings into the home rental market with two new acquisitions. The company revealed that it has acquired both RentRange  and Investability , which will substantially expand their offerings, reach, and data capabilities in the real estate services market.
“These acquisitions squarely support our real estate and mortgage marketplace strategy and enable us to provide valuable analytics to the home rental, renovation, sale and origination markets,” said William B. Shepro, CEO of Altisource.
Editor's note: The Five Star Institute is the parent company of MReport and MReport.com.