- Properties not yet identified as subject to an HOA – particularly those located in “super lien” states – represent significant portfolio risk to mortgage lenders, servicers and capital market professionals
- Black Knight HOA Property Indicators is an automated data solution that continuously reviews portfolios to flag HOA properties
- The solution helps identify HOA properties when performing loan origination due diligence, assessing servicer portfolio risk, and when reviewing and reporting potential risk for secondary market investors
- Black Knight’s end-to-end suite of HOA solutions provides HOA contact details, homeowners’ HOA account status, curative actions for HOA delinquencies and proactive monitoring of loan portfolios
- Identifying and monitoring HOA properties and delinquent HOA fees in loan portfolios has become even more critical In today’s heightened risk environment of forbearances, modifications and delinquencies
JACKSONVILLE, Fla. – Jan. 26, 2021 – Today, Black Knight, Inc. (NYSE:BKI) introduced HOA Property Indicators, an innovative approach to efficiently and cost-effectively identify properties subject to one of the estimated 351,000 homeowners associations (HOAs) nationwide. With more than 27 million housing units and over 73 million residents subject to HOAs, lenders, servicers and capital markets professionals need an easy-to-use, scalable method for accurately identifying these properties to streamline originations and help mitigate risk.
Black Knight’s HOA Property Indicators solution quickly and automatically identifies properties subject to an HOA and should be used when performing origination due diligence, assessing lender portfolio risk and monitoring potential risk for investors and GSEs. The solution provides an easy-to-identify “Yes or No” flag, so users can efficiently confirm HOA status and focus on these properties, as appropriate.
There are now 22 “super lien” states in the U.S., along with Puerto Rico and the District of Columbia, where state statutes and/or case law allow for an HOA foreclosure to receive priority over a first-lien mortgage. These super liens can lead to significant losses for servicers and investors. Combined with current and anticipated increases in forbearances, loan modifications and delinquencies, identifying and monitoring HOA properties and delinquent HOA fees in loan portfolios has become even more critical. Additionally, properties in HOAs often require additional due diligence during the loan origination process.
HOA Property Indicators is part of Black Knight’s HOA solutions suite, which includes data and services that help with everything from identifying properties within an HOA to curing HOA delinquencies. HOA Property Indicators has nationwide coverage, quick turnaround times and flexible delivery options, including batch and API.
“In this escalated risk environment, it is increasingly important for lenders, servicers and investors to quickly identify properties in HOAs,” said Ben Graboske, president, Black Knight Data & Analytics. “Our comprehensive suite of HOA solutions provides a cost-effective and efficient way for lenders to streamline their origination processes, for servicers to be more proactive in protecting their loan portfolios, and to help reduce risk for the secondary market, particularly for properties in HOA super-lien states.”
About Black Knight
Black Knight, Inc. (NYSE: BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com.