DS News

78 However, modular construction compa- nies face several challenges in creating and distributing their buildings. Unionized labor forces have not embraced modular housing construction. Acquiring the large upfront funds from lenders can be a challenge as well. e natural ebbs and flows of the real estate market can also be challenging for modular housing companies, which need continuity in demand to prosper. Another major challenge comes in the form of regulations. Across the country, there are about 93,000 different building codes, which vary by city and county, according to the National Review. Inspections for permits may need to take place in the manufacturing facility, which may be far from the city where the building will ultimately be located. Whether modular housing is the way of the future remains to be seen. e developer of 461 Dean, Forest City Ratner, is reported to have exited the modular home business after the completion of the tower, which faced several delays before completion. However, one of the developer's former executives, Roger Krulak, acquired the factory used to construct 461 Dean and founded Full Stack Modular, a modular construction company with a self-stated "tech-centered approach to urban development." PENNSYLVANIA Fair Warning on Foreclosure Notices e Pennsylvania Supreme Court issued its long-anticipated decision concerning notices of intent to foreclose in Pennsylvania—a question that has perplexed lenders and servicers for some time. e issue involved situations where foreclosure is pending and then either volun- tarily withdrawn by the lender or dismissed by a court. If the lender chooses to proceed with another case after termination of a prior proceeding, and no new payments are tendered by the borrower, a question existed whether a lender was legally required to tender the new Act 6 notice of intent to foreclose before com- mencing the second action or not. e Pennsylvania Supreme Court has answered this question: Upon termination of a foreclosure proceeding in Pennsylvania if the lender or servicer wishes to proceed with another case, and the action is governed by Pennsylvania Act 6, a new notice must be tendered. e state Supreme Court issued its opinion while ruling, in the matter of JP Mor- gan Chase Bank N.A., by its successor Great Ajax Operating Partnership, LP v. Taggart, No. 6 EAP 2018 (Pa. 2019). In the decision, the Supreme Court reviewed several key statutes governing notice as well as the consequences of the voluntary withdrawal of a case or dismissal by a court. By way of background, Pennsylvania has two main statutes regulating notices of intent to foreclose, Act 6 and Act 91. Under Act 6, enacted in 1974, there is a specific notice that mortgagees must send to borrowers prior to an intimation of foreclosure. In 1983, the state ad- opted Act 91, and various amendments to that act have resulted in a new form of notice to be sent to borrowers prior to initiation of foreclo- sure. However, Act 91 has certain exceptions where it does not apply, specifically if the loan is insured by the FHA, or the loan is greater than 24 months delinquent, the arrears exceed $60,000; or the premises is not the principal residence of the borrower. In Taggart, Act 91 did not apply as the property was not the borrower's principal resi- dence. Hence, Act 6 governed the initiation of the foreclosure process. e lender sent the notice and commenced a foreclosure action. e borrower moved to dismiss the foreclosure action and the lender did not reply to the mo- tion, resulting in a dismissal of the foreclosure action by the trial court. e lender chose to file a new action and did not send any new notices prior to the initiation of the new action. Taggart challenged the second proceed- ing, saying that the lender was required to send new notices before filing a new action. e Supreme Court agreed with the bor- rower, and now the issue is clear in this state. e Supreme Court stated, "A lender may not recycle a stale pre-foreclosure notice that it issued in connection with a prior complaint in mortgage foreclosure." e Court concluded that "[i]n view of the statutory language, the occasion and necessity for Act 6, the mischief to be remedied, and the object to be attained, . . . Act 6 requires a new pre-foreclosure notice each time the lender initiates a mortgage foreclosure action." The Cutting Edge of Property Valuations For the fourth consecutive year, Service- Link Valuation Solutions, LLC, received a 'MOR RV1' ranking from Morningstar Credit Ratings, LLC, where "1" is the highest ranking available to a residential vendor in the asset-valuation market. Morningstar's forecast for the ranking is Stable. Morningstar highlighted Pennsylvania-based ServiceLink's technological advancements and multilevel risk-mitigation culture as critical factors in issuing the superior designation. e ranking announcement stated, "Service- Link incorporates strong vendor-selection cri- teria and vendor-rating protocols in its platform that effectively measure vendor performance, and this is reflected in the company's execu- tion of key performance indicators pursuant to service-level agreements with its clients … ServiceLink's flexible technology platform and its ability to leverage the parent company's [Fidelity National Financial] many product offerings in the real estate industry should con- tinue to provide market growth opportunities and strategic business diversification." In the rankings announcement, Morn- ingstar credits ServiceLink's EXOS digital settlement services platform for continuing to execute technological innovation to better serve clients: "EXOS provides mobile technol- ogy that streamlines the appraisal scheduling process. EXOS includes a real-time calendar, allowing the customer to schedule an appraisal date that is convenient … e scheduling pro- cess can be confirmed in minutes, and the time between an order scheduled and completed is dramatically reduced." "is ranking is not just a seal of approval for ServiceLink's Valuations division, it's a promise to our capital markets customers that we have the innovative solutions, financial stability, technology, and business resiliency to be in good standing with Morningstar Credit Ratings," said Dave Steinmetz, Division Presi- dent, Origination Services. ServiceLink is a provider of digital mort- gage services. e company delivers valuation, title and closing, and flood services to mort- gage originators; end-to-end sub-servicing to mortgage servicers; and default valuation, integrated default title services, vendor invoic- ing and claims audit services, as well as auction services to servicers. Data from the Zillow Buyer- Seller Index revealed that Pittsburgh, with a median home value of $147,000, and Philadelphia, with a median home value of $232,000, are among the top 10 housing markets for homebuyers. KNOW THIS

• Cover