First American National Default Title Services has launched a National Residential Rental Services (NRRS) division, which helps lenders evaluate and execute rental-based loss mitigation strategies for non-rural, non-seasonal, multistate, single-family real estate owned (REO) properties.
The NRRS division was built specifically to address the needs of financial institutions pursuing a national residential rental strategy for REO properties, and it uses best practices and systems adopted from both the mortgage servicing and property management industries.
National Residential Rental Services expects to accelerate financial institutions’ use of a broad array of rental-based strategies as an extension of loss mitigation and asset disposition practices by providing services that facilitate both the generation of net positive cashflows from the rental income of otherwise nonperforming assets, and the protection of asset values for eventual sale.
NRRS also expects that its services will assist financial institutions in complying with recently enacted and prospective anti-displacement legislation such as the Protecting Tenants at Foreclosure Act of 2009.
“First American believes a broader adoption of rental-based strategies provides significant macroeconomic and social benefits during these challenging economic times by providing investors and servicers with greater control and flexibility over the supply of competing REO ‘for sale’ properties, while also providing a net positive cashflow,” says Wes Mee, president of First American National Default Title Services Division.
