July 10, 2017

Big changes to Florida Homeowners Association and Condominium Estoppel Process

A recently passed piece of legislation in the state of Florida, HB 483, revises the process and fees of HOA/COA response time and charges for providing corporations and homeowners with Estoppel Certificates. On June 14th, Florida Governor Scott signed a bill into law that went into effect on July 1st, 2017. Among changes to HOA/COA board of director term limits and elections, the bill also contained an item dear to the hearts of the many people who have tried to procure a timely and accurate estoppel for a reasonable fee: Estoppel requests must be provided within 10 days, and estoppel fees are capped.

An estoppel letter, for those readers who reside outside the state of Florida, is an up-to-date account statement for all past due HOA/Condominium dues, fines, assessments, and penalties. This timely and correct accounting is important to parties involved with the purchase or sales of such assets, as these unpaid charges can complicate a smooth closing.

The legislation standardizes the information that must be provided for on the estoppel, and includes (among other items) assessment amounts and dates due, attorneys contact information, itemized accounting of all moneys owed on the date of issuance of estoppel to the interested parties, any open violations for unit, and contact for all other associations of which the unit is a member.

The bill’s main attractions are the formalized rules regarding the 10-day requirement for delivery of the estoppel and capped fees for preparation and delivery. The bill requires the HOA/Condo Association to deliver estoppel certificates within 10 days of request and be valid for a minimum of 30 days if returned by email; 35 days if returned by regular mail. An Association may charge no more than $250 for preparation of an estoppel for owners who are current on their assessments. If an estoppel is requested on an expedited basis, a charge of up to $100 can be added and the estoppel must be delivery within 3 days. An added charge of up to $150 can be charged if the owner is delinquent on assessments. This adds up to a $500 maximum fee for an expedited estoppel with past due fees.

Precedent HOA/ Condo program focuses on managing HOA accounts for title agents, lenders, mortgage servicers and large aggregators of residential properties by providing a range of scalable services focused on identifications of HOAs, confirming accurate contact information, obtaining account status detail and ensuring that our clients financial expense and exposure remains at minimum.

July 3, 2017

HECM Assignment and HOAs – Are you Doing It Right?

Home Equity Conversion Mortgages (HECM) have recently become a very popular product with Americans as they enter their senior years and utilize the equity in their homes to lighten the burden on their financial situation and increase the quality of their lives. The large numbers of HECM loans serviced has led to increased regulatory oversight and policies, and increased responsibility for servicers.

A little noted passage on page 4 of the HUD Mortgagee Letter 2017-05 is beginning to get the attention of HECM servicers nationwide. Mortgage Letter 2017-05 is focused on HECM Claim Type 22 (CT-22) Assignment Requests, and among other things requires HECM servicers to provide contact information for HOA/Condo Associations and proof that all fees are current for assignment requests to HUD to be processed. What does all of this mean and how can servicers take advantage?

HUD’s ruling

HUD has recently communicated with servicing groups that this rule would be enforced, regardless of super lien or non-super lien status of the state where the HECM is located. What this means for servicers and investors is that HUD will not accept assignment claims with outstanding HOA/Condo dues or delinquency. The responsibility for identification, contact, review of outstanding balance, and payment of legitimate fees is now the obligation of the servicer.

Evidence of Payment and Current Status

HUD has also placed the obligation of providing proof of payment of all past due obligations to HOA/Condos Associations on the shoulders of the servicer. As there is no single document provided on a nationwide basis that will work, the type of document that HUD will accept is vague, but will vary from state to state. States have developed their own procedures and documents for dealing with these issues, as there has never been a nationwide standard or terminology that was followed. Estoppels are used in Florida while other states utilize payoff letters, ledgers, demand letters, etc. This confusion between states can cause issues for any organization, as the servicer cannot be certain what documents they are getting from the HOA/Condo management.

Further, the legal responsibilities and exposure placed on HECM servicers are expanding as the industry comes to grips with the various aspects of these loans. Servicers that are not keeping abreast of recent regulatory changes may find themselves facing increased costs and risks in their portfolios. The good news is Precedent is ready to assist HECM servicers in mitigating the risk posed by HOA/Condo past due accounts and the liabilities that today’s HECM servicers face in managing their assignment process.

Precedent offers HOA/Condo management solutions

Precedent performs HOA/Condo identification, contact, ledger and fee reviews and negotiation, payoff and ongoing tracking for HECM servicers on a nationwide basis. We are familiar with all state specific laws (and track their changes), policies, procedures, and paper work issues, and have successfully resolved 10’s of thousands of accounts for our clients.


March 22, 2017

Precedent Management Announces Expansion of Code Compliance Division

Precedent Management, LLC, a leading provider of innovative real estate solutions, announced today the expansion of its Code Compliance service division to accommodate demand for its municipal violation management services which includes proactive identification, compliance verification, vacant property registrations and curative solutions for lenders, servicers, and real estate aggregators nationwide.

"During the Great Recession municipalities became well versed compensating for loss of tax revenue by levying code violations, fees and penalties during the downturn," said Amy Sanchez, Precedent Management's Co-CEO. "Unfortunately, the volume and value of violations hasn't diminished as the economy has recovered and real estate operators and servicers are still running into these, often preventable headaches."

Precedent's Code Compliance platform evolved from service contracts with the United States Department of Housing and Urban Development and Federal Deposit Insurance Corporation and is maximized through the use of a proprietary fulfilment software, RView™, and highly trained staff.

"The investment to expand our Code Compliance division will focus on adding additional resources and upgrading automated technologies that support this segment of our company," said Rob DeWald, Co-CEO. "This represents our overall commitment and steady focus to preserve our client's priority positions."

About Precedent Management, LLC

Precedent Management, LLC, offers a comprehensive suite of real estate support service products such as lien curative, code compliance, HOA, utility and real estate tax account management solutions.

Precedent Management team has supplied its services to over 1 million commercial, industrial, multi-family and single-family assets and 300,000 performing, non and re-performing loans throughout the nation including Hawaii, Alaska and Puerto Rico.

Precedent Management's persistent commitment to set the standard in real estate solutions has made it an industry leader in real estate management and consulting services nationwide.

CONTACT: Ralph Stebenne, ralphstebenne@precedentmgmt.com


December 30, 2016

Precedent Management Announces Acquisition of Prescient, Inc. Business Units

Precedent Management, LLC, a leading provider of innovative real estate solutions nationwide, announced today its acquisition of HOA and Tax lines of business from Prescient, Inc., a government-focused real estate provider based in Coral Gables, Florida. The acquisition, while in negotiations from 3rd quarter, was finalized early December and affirms Precedent Management's commitment to gaining traction in the real estate component servicing space.

"The acquisition has been a natural transition for our team," said Amy Sanchez, Precedent Management's Co-CEO. "We were able to retain key executives and associates, proprietary technology and gain significant market share. All of which contributes to our overall goal of offering comprehensive HOA, Tax and Utility solutions for mortgage servicers, lenders and agencies nationwide."

Precedent Management clients can expect continued high-quality, personal service, while benefitting from added features such as HOA Auto ID (automated ID of homeowners associations), online order submissions and client report viewing rights.

"We are excited to expand our product lines using the acquisition of technology rights as a basis to develop and offer new and innovative lien curative solutions for our clients," said Rob DeWald, Co-CEO for Precedent. "Keeping our client's position in first place is our ultimate priority."

About Precedent Management, LLC

Precedent Management, LLC, offers a comprehensive suite of real estate support service products such as lien curative, code compliance, HOA, utility and real estate tax account management solutions.

Precedent Management team has supplied its services to over 1 million commercial, industrial, multi-family and single-family assets and 250,000 non-performing loans throughout the nation including Hawaii, Alaska and Puerto Rico.

Precedent Management's persistent commitment to set the standard in real estate solutions has made it an industry leader in real estate management and consulting services nationwide.

Media Contact Information:
Precedent Management, LLC
7875 NW 12th St., Suite 110
Doral, FL 33126
P: 786-452-1807