A new offering from Black Knight Financial Services (BKFS) aims to help protect mortgage servicers and investors from potential losses due to homeowners’ association super liens, which are recorded by HOAs in several states for delinquent accounts that put the HOA in first lien position, superseding the mortgage.
Black Knight’s HOA Solutions expands on Black Knight’s flagship HOA Lien Pro product, and offers the ability to identify properties subject to HOAs nationwide, detect liens on those properties, and help cure delinquencies.
Black Knight’s HOA Solutions offering features three components:
HOA Identification Suite – Consists of three products: HOA ID Score, HOA ID Score Plus and HOA Identification Report.
The first two products offer portfolio analytics that help establish which loans are subject to an HOA. HOA Identification Report is more frequently used as part of default servicing and the foreclosure process to determine if an HOA exists for a property.
If one does, HOA Identification Report provides precise contact details for the HOA, property management company and collections firm, if applicable, the company said.
HOA Lien Monitoring – Helps servicers to cost-effectively monitor their entire portfolios through three products: HOA Lien Pro, HOA Lien Search and HOA Direct.
This suite identifies HOA liens and/or delinquency information that may present risk to a portfolio and can provide HOA lien copies, payoffs, ledgers and estoppel letters to provide servicers with a better understanding of the HOA lien status.
Collectively, these three products help Black Knight to search and monitor 100% of any portfolio on behalf of a client, the company said.
HOA Curative – If an HOA delinquency or lien is identified, Black Knight can assist clients by performing statutory reviews; conducting negotiations to support fees that are justified and in accordance with state statutes and community association bylaws; making payments to cure the HOA delinquency or keep the property current on HOA fees owed; and verifying lien releases, the company said.
Additional Black Knight HOA Solutions services include obtaining documents such as bylaws, declarations, lien satisfaction documentation and covenants, conditions and restrictions, using sing a combination of its Black Knight’s title plant data, quick title searches and payment information directly from the HOAs.
“We are pleased to expand upon our successful HOA Lien Pro product to offer a true start-to-finish, configurable solution for servicers dealing with HOAs,” said Kevin Coop, president of Black Knight’s Data & Analytics division. “HOAs are growing nationwide, and there is great demand for this type of information in the market to help servicers and investors better mitigate risk and avoid potential losses.”