POMONA, Calif., February 15, 2023 — LERETA, a leading national provider of real estate tax and flood services for mortgage servicers, together with Sperlonga Data and Analytics Systems, today announced the launch of a first-of-its kind solution for Homeowner Association (HOA) reporting and payments. Powered by Sperlonga’s data, the solution can automatically monitor payments for more than 80% of the 35 million properties in HOA and condominium associations, but 100% coverage is also available.
Using the new solution, LERETA will track and report delinquencies to servicers before missed payments become liens and/or accrue heavy penalties. Many times, these payments and penalties are not reimbursable to the servicer. Early action on identified delinquencies reduces overall penalties by 300%, if they occur before a lien is filed.
The company will also offer an HOA escrow service, similar to tax escrow accounts, a first of its kind for the servicing industry.
“Every year, HOAs nationwide collect more than $100 billion in assessments and dues, and at any given time an estimated 10% of these fees are delinquent,” said John Walsh, Chief Executive Officer of LERETA. “In more than 20 super lien states unpaid HOA fees, like taxes, can take priority over a mortgage and result in the loss of a property. This creates significant risk for servicers and investors.
“Historically, the servicing industry had to be reactive to HOA delinquencies, because there was no practical way to track the behavior of millions of homeowners in more than 375,000 HOAs. Our data partner, Sperlonga, however, is a significant data aggregator to property managers and HOAs and currently can access automated payment information for more than 80% of properties in these communities.
“The combination of their real-time data, and LERETA’s deep experience in escrow payment technology and delinquency management, is a first-of-its-kind solution to a real and growing problem for the servicing industry.”
The LERETA solution provides life of loan coverage, and can be set up during the origination process, as part of their escrow set-up. “For the first time, lenders can improve their customer experience by including HOA fees with P&I, taxes and insurance, saving borrowers the hassle of making separate payments to their HOA,” said Walsh.
Matt Martin, Founder and CEO of Sperlonga added: “We knew the depth and quality of HOA data and we’re confident that our solutions could ensure real time accuracy. What we needed was a partner who could execute this flawlessly and LERETA was the obvious choice.”
For more information on LERETA’s HOA Solution, email firstname.lastname@example.org or visit Booth 501 at the MBA Servicing Solutions Conference February 21-24.
Sperlonga Data and Analytics Systems was formed to bridge the gap between the credit markets and community association industry. The firm is the leading provider of credit reporting to the community association industry as well as a dominate player in providing rental credit reporting to both single family and multifamily property owners and managers.
Since 1986, LERETA has provided the mortgage industry the fastest, and most accurate property tax data and flood information across the U.S. LERETA’s services are designed to increase efficiency, reduce penalties and liabilities and improve processes for mortgage originators and servicers.