Magazine article Mortgage Banking

Sperlonga Expands HOA-Monitoring Service

Magazine article Mortgage Banking

Sperlonga Expands HOA-Monitoring Service

Article excerpt

Sperlonga Data and Analytics LLC, Arlington, Virginia, a subsidiary of national real estate asset firm MMREM, has expanded its service designed to help mortgage lenders and servicers reduce risk by alerting them when borrowers fall behind on their homeowner association (HOA) fees. Previously a subscription service, the improved version, now known as Life of Loan Association Surveillance (LOLAS[TM]), is a valuable safe guard when originating loans or modifying existing mortgages by virtue of warning servicers of potential defaults before mortgage payments are actually missed.

Unpaid HOA accounts are a clear sign of impending mortgage delinquencies, and have been difficult for servicers and investors to track. In many cases, the presence of a homeowner association is actually unknown until problems occur in obtaining clear title to properties. In some states, HOA claims and liens supersede, first-lien positions and add delays and considerable expense to the resale process.

Life of Loan Association Surveillance is simple for servicers to initiate, according to Sperlonga. When new loans are originated or modifications are made, Sperlonga provides a form to execute with the borrower that allows Sperlonga to communicate directly with the HOA.

LOLAS then monitors monthly payments and notifies the servicer when payments are missed. The LOLAS service complements Sperlonga's Delinquency Check[TM], which spot checks to make certain borrowers are not severely delinquent on HOA payments prior to a loan modification or short sale, forewarning of potential diffaculties with those transactions. …

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