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92 HOA Lien Pro gathers its data from HED plants, which are considered the highest quality source for accurate property informa- tion, according to Black Knight. e issue of the super-priority lien has been a hotly contested one in many states, particularly in Nevada as of late. In Septem- ber 2014, the Nevada Supreme Court made a much-talked-about ruling allowing HOAs to extinguish mortgages nonjudicially; several lenders subsequently appealed the decision. One case central to the Nevada Supreme Court decision involves a house sold in Las Vegas in 2007 with a mortgage loan for $885,000 originated by Bank of America. e owner defaulted on the loan a year later, and Southern Highlands Community Associa- tion foreclosed on the property. e associa- tion sold the house at an auction in Sep- tember 2012 to SFR Investments Pool 1 for $6,000—the amount the homeowner owed in delinquent HOA dues. When Bank of America tried to schedule its own foreclosure auction on the house the following Decem- ber, SFR Investments made a filing to stop Bank of America's foreclosure auction, claim- ing the mortgage had been extinguished when SFR bought the house in September. New Mexico RANK: 7 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate NOVEMBER 2014 1.86% 2.27% 6.1 YEAR AGO 2.02% 2.58% 6.6 YEAR-OVER-YEAR CHANGE -7.8% -11.9% -0.5 Top County TORRANCE COUNTY 90+ Day Foreclosure Delinquency Rate Rate NOVEMBER 2014 2.78% 5.18% YEAR AGO 2.87% 5.57% YEAR-OVER-YEAR CHANGE -3.0% -7.0% Top Core-Based Statistical Area GRANTS, NM 90+ Day Foreclosure Delinquency Rate Rate NOVEMBER 2014 2.04% 4.17% YEAR AGO 2.36% 4.21% YEAR-OVER-YEAR CHANGE -13.9% -0.9% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the November 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary November 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Oregon RANK: 21 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate NOVEMBER 2014 1.53% 1.65% 6.7 YEAR AGO 1.72% 2.53% 7.1 YEAR-OVER-YEAR CHANGE -11.1% -34.7% -0.4 Top County CROOK COUNTY 90+ Day Foreclosure Delinquency Rate Rate NOVEMBER 2014 1.30% 3.31% YEAR AGO 1.83% 5.39% YEAR-OVER-YEAR CHANGE -29.0% -38.6% Top Core-Based Statistical Area PRINEVILLE, OR 90+ Day Foreclosure Delinquency Rate Rate NOVEMBER 2014 1.30% 3.31% YEAR AGO 1.83% 5.39% YEAR-OVER-YEAR CHANGE -29.0% -38.6% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the November 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary November 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. The six-month decline in non- current loan percentage in Oregon in January, down to 5.01 percent. It was the largest six- month decline among states. Source: Black Knight Financial Services STAT INSIGHT 10.28% IN THE NEWS Black Knight Launches Tool to Protect Mortgagees from Super-Priority Lien Losses Black Knight Financial Services came up with a solution to identify the risk associated with mortgages that have been given "super- lien priority" status. Currently, 22 states allow homeowners associations (HOAs) a super-priority lien, which supersedes the mortgage of the lender or servicer. e super-priority status allows HOAs to foreclose nonjudicially (without going through the courts) on a property that is delinquent on HOA dues and subsequently sell the property at an auction, usually at a fraction of what the borrower owed on the mortgage. us, super-priority liens have often resulted in significant losses to the mortgagee. Black Knight's new solution, HOA Lien Pro, helps protect servicers and investors from the losses that may result when an HOA exercises a super-priority lien on a property. HOA Lien Pro can identify which mortgage loans in a portfolio are subject to an HOA and then provide the mortgagee with the name and contact information of that HOA or property management company so that the mortgagee may contact the HOA and resolve any deficiencies that may have arisen before an HOA foreclosure auction, according to Black Knight. e new tool also offers an estoppel letter service to help keep the mort- gagee informed as to the property owner's financial standing with the HOA, how much is owed in dues, and a projection of the amount and frequency of future payments. "Considering the explosive growth in community associations over the last 10 years, and the fact that 22 states now grant super- lien status to HOA assessment liens, this is a critical issue for mortgage servicers and the GSEs," said Kevin Coop, president of Black Knight Data and Analytics, a division of Black Knight Financial Services. "HOA Lien Pro is a simple, cost-effective way to help mortgage servicers and investors reduce the risk of having their first lien positions extinguished by HOA super liens." Many states granted super-priority liens to HOAs as a result of the housing crisis in order for HOAs to receive the funds they needed to maintain their communities. Currently, no central HOA database exists, which often leaves mortgagees uninformed as to which properties are subject to HOAs.