SFIG, Joint-Trades Submit Letter to the Banking Agencies Addressing HOA ‘Super-Priority’ Liens

On Tuesday, November 10th, SFIG, sent a joint-trade association letter to the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency (“Banking Agencies”) urging them to implement standards or guidelines to prevent homeowners’ association (“HOA”) super-priority liens from having the capacity to extinguish a prior perfected and recorded mortgage lien.

The letter notes that the Federal Housing Finance Agency has stated that it will not consent to the extinguishment of any lien of a Fannie Mae or Freddie Mac backed loan by an HOA purporting to foreclose such a “super-priority” lien, citing federal preemption authority.

SFIG was joined by the Association of Mortgage Investors, American Bankers Association, American Financial Services Association, Housing Policy Council of the Financial Services Roundtable, Mortgage Bankers Association and Securities Industry and Financial Markets Association in submitting the letter to the Banking Agencies.

Please contact Amanda.Bateman@sfindustry.org if you would like to participate in SFIG’s Residential Mortgage Committee.

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