Wingspan, AFN Offer Tenant Act Compliance Services

Posted by Orb Staff on November 06, 2009 No Comments
Categories : Mortgage Servicing

Wingspan Portfolio Advisors LLC, a Dallas-based specialty servicer, and the American Legal and Financial Network (AFN) have announced the launch of their National Residential Property Receivership Program, providing solutions to the problems for lenders, investors and servicers that arise from the Protecting Tenants at Foreclosure Act, which was signed into law in May of this year.

The legislation presents the financial services community with "new and potentially dangerous risks" related to servicing certain types of residential properties, the companies say.Â

‘When borrowers own property, they are required by the lender to make payments and maintain insurance to safeguard the home," explains William LeRoy, president and CEO of the AFN. "Under the new legislation, when lenders take the property back, many new responsibilities shift to them. They include duties to tenants, who are often the previous owners, and to local municipalities, which impose penalties if the real estate is not properly maintained."Â

LeRoy says the requirements of the new legislation have heightened the responsibilities and legal risks of investors, servicers and lenders, who are generally not prepared for them. In most states, courts may appoint receivers to perform the requisite duties, and the new national residential receivership program has been created to specialize in assuming these responsibilities.

"Receivers stand in the shoes of the lender and administer the needs of the property," says Steven Horne, CEO of Wingspan Portfolio Advisors. "They are often the best option for lenders when faced with the challenges of servicing tenant-occupied properties, impaired or abandoned houses, or properties with unfinished construction."Â

Wingspan's preferred attorney network relationship with the AFN, as well as its own property management capabilities, ensure that investors and servicers are in compliance with the legislation, the companies say.

"Courts will experience tremendous demand for qualified receivers to help prevent communities from becoming blighted and keep properties in safe, saleable condition," LeRoy adds. "Bringing together the servicing and legal skill to provide focused, expert receivership capabilities makes tremendous sense in the effort to safeguard tenants, preserve communities and ensure compliance for all parties with these challenging laws."

SOURCES: Wingspan Portfolio Advisors LLC, American Legal & Financial Network

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