Rental Lease Program Launched
Santa Ana, CA-First American National Default Title Services, a division of First American Title Insurance Co., is launching a new National Residential Rental Services division, providing financial institutions with an efficient option for evaluating and executing rental-based loss mitigation strategies for non-rural, non-seasonal, multistate single-family real estate-owned properties.
The division is the first residential lease service program that has been conceived, designed and built specifically to address the needs of financial institutions pursuing a national residential rental strategy for REO properties. It has been developed using 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 cash flows 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 cash flow," said Wes Mee, president of First American National Default Title Services.
Tim Bolger, senior vice president of NRRS describes the focus of the division as "leveraging the products, services and relationships available within the First American family to make implementation of national residential rental strategies as efficient as possible for financial institutions."