In super-lien states, HOAs may foreclose on a property by displacing the first-lien mortgage position, as permitted by their governing rules and state law. With over 27 million housing units in the U.S. subject to an HOA, this presents a significant risk to lenders, servicers and investors. The current escalating risk environment of increased forbearances and loan modifications makes efficiently identifying HOA properties and delinquent HOA fees all the more important.
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Black Knight’s HOA Indicators offers a cost-effective, automated way to help you determine if a property is part of an HOA. This intuitive and reliable solution is used for origination due diligence, portfolio risk management, and monitoring potential risk for investors.
Utilizing a match and append process, HOA Indicators quickly identifies the properties in a portfolio subject to an HOA. A “Yes or No” flag is provided, so users can focus on specific properties for further evaluation and monitoring.
Now more than ever there’s a vital industry need for a fast, scalable approach to identify HOA properties:
HOA Indicators is a critical and cost-effective first step for mortgage due diligence and risk mitigation processes. The solution can be used to support numerous use cases across the mortgage life cycle.
Lenders can efficiently automate and scale HOA property identification as part of the origination due diligence process.
Determine if there are any red flags in the HOA community, such as too few owner-occupied units to meet GSE requirements
Learn how the HOA manages the community to ensure it meets the lender’s guidelines
Discover if the HOA community has a delinquency rate of 15% or higher: FHA will not back loans associated with those HOAs
Identify potential HOA super lien foreclosure risk in the event loans are sold to GSEs and other investors
Identify HOA properties with the potential for encumbrances on the title
Servicers can use HOA Indicators to support their default, loss mitigation and due diligence processes.
Asset and portfolio managers can leverage HOA Indicators to support whole loan due diligence for both pre-bid and post-bid scenarios.
Fast, cost-effective approach to streamline the HOA identification process
Database that covers more than 55 million properties
National property coverage that allows for property identification in super lien states
Industry leader in data standardization and matching property addresses
Seamless match and append solution that delivers reliable information
Black Knight unique ID, allowing HOA Indicators to be combined with other data sets for additional property insights
Can be combined with other Black Knight HOA solutions to obtain HOA contacts, monitor HOA liens and take HOA lien curatives actions
Quick delivery turnaround times
Offered on one-time or ongoing basis