LRES has announced the launch of homeowners’ association (HOA) services to aid originators, servicers and investors from potential risks associated with HOA defaults and liens. This new service is designed to uncover lien status for stakeholders by identifying delinquent HOA fees or liens and mitigate the risks associated with super-liens, saving servicers and investor clients significant losses. LRES’ HOA services also provide loan originators with quick and cost effective verification of the HOA status during refinance.
HOA services centralize the HOA contact/validation process, establish best practices for information retrieval from HOA companies, and ensure compliance with state statues when dealing with negotiation of delinquent HOA dues and fees. Additionally, these services support research and identification capabilities, which catalogs the HOA(s) associated with properties and includes contact details for HOA companies. At the time of closing, LRES will reconcile amounts paid to the HOA versus what is outstanding and obtain a final settlement confirmation and satisfaction letter from the HOA.
“Our new product helps a variety of mortgage professionals with the HOA contact and validation process,” said Roger Beane, LRES founder and chief executive officer. “We believe this tool will provide mortgage stakeholders a proactive process in mitigating losses as well as complying with HUD and Fannie’s requirements in resolving HOA delinquencies.”