EX-99.2 3 exh99-2.htm REALTECH TITLE LLC HOA DISCREPANCY REVIEW

Exhibit 99.2

 

June 25, 2021

REALtech Title LLC

3001 Leadenhall Road,

Mt. Laurel, NJ 08054

RE:Home Partners of America 2021-1 SFR Securitization HOA Discrepancy Review

Ladies and Gentlemen:

In connection with the offering (the “Offering”) of the Securities by the Issuer referenced above, we have conducted the HOA Discrepancy Review further described below. The Review was conducted in accordance with what we believe to be customary residential title practice and was intended to assist in resolving certain discrepancies regarding whether specified properties may be subject to an active homeowner’s, condominium, or other common-interest community association (each an “HOA”) as of the date set forth below. A more detailed description of services performed and of our findings and conclusions is set forth below. The description below is intended to satisfy the disclosure requirements of Items 4 and 5 of FORM ABS DUE DILIGENCE-15E, which certification has been provided to you concurrently herewith.

I.Manner and Scope of Review (Item 4 of Form ABS Due Diligence-15E)
a.Background.

We have been informed that:

1.The Securities are to be secured by, among other things, certain mortgage loans (the “Mortgage Loans”) relating to certain residential rental properties (the “Properties”).
2.Some of the Properties were previously designated by Borrower as not being subject to an HOA (“Non-HOA Properties”).
3.Based upon a review of the Properties conducted by a third party, certain discrepancies may have been identified suggesting that certain of the Non-HOA Properties may in fact be subject to an HOA and/or an HOA Discrepancy Review for certain properties was deemed appropriate by the Borrower.
b.Properties Subject to Review. [(1 ) through (3) of Item 4.]

The Borrower and/or Borrower’s agent provided us with a list of properties with respect to which we were requested to perform our HOA Discrepancy Review (the “Subject Properties”). The list of Subject Properties is attached hereto as Schedule I.

   

 

c.How the Review Was Conducted. [(4) of Item 4]

We applied what we believe to be customary residential title practice to locate evidence that a Subject Property may be subject to an active HOA. We and/or our third-party vendor(s) employ a variety of customary searching methods, the most salient of which are described below, that are reasonably designed to reveal evidence regarding the existence of an active HOA (the “HOA Discrepancy Review”). Every property is unique, and not every search method is employed with respect to each Subject Property. These methods are intended to allow us to reach a reasonable judgment regarding the likely existence of an active HOA. However, for a variety of reasons, including the reasons described below under “Limitations of Searching Methods,” it is not possible to determine with absolute certainty that no active HOA exists with respect to the Subject Properties.

Customary Searching Methods. Set forth below are certain customary inquiries which we and our third party vendor(s) employ to locate evidence that an active HOA may exist. As noted, not all of these methods are used for every Subject Property.

1.Review of DCCR. In some instances, inquiry is made regarding whether the property is subject to any Declaration of Covenants, Conditions and Restriction (“DCCR”) or similar documentation. Where a DCCR does exist, it may be examined to ascertain whether the creation of an HOA was contemplated.
2.Review of state registrations. A search of appropriate state records is sometimes conducted to ascertain whether an HOA has been registered as may be required by applicable law.
3.Internet searches. Standard search engines may be used to search the internet for evidence of an active HOA.
4.Review of prior mortgages. Certain mortgages to which the Subject Property was previously subject may be reviewed, in order to ascertain whether a rider had been attached which would indicate that the Subject Property is part of a Planned Unit Development. This type of rider is intended to give the lender the right to pay any dues that may be owed, and therefore is commonly used where an active HOA is present.

Limitations of Searching Methods.

As noted, it is not possible for any inquiry to prove with absolute certainty that no HOA exists with respect to the Subject Properties, and customary searching methods are subject to certain inherent limitations. Those limitations include, but are not limited to, the following:

1.It is possible for an HOA to exist even though the DCCR reviewed does not contain an explicit reference to an HOA, or there appears to be no DCCR. This may happen for a number of reasons. For example, there may have been a drafting error in the DCCR, or an important amendment to the DCCR or the DCCR itself could have been misfiled or incorrectly referenced. Old

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or vague descriptions can also prevent this review from being definitive. It is also possible for a DCCR to contemplate an HOA, yet nonetheless one may not be active.

2.

 

It is possible for an HOA to exist and yet not be registered with relevant state agencies. In some instances, an HOA may not be legally required to be registered. Furthermore, even when such a requirement applies, there may nonetheless be an HOA that is simply not in compliance with applicable registration requirements.
3.Many HOAs do not establish web sites or other presence on the world wide net. Further, internet searches are, by their nature, imprecise. Thus, the lack of applicable search “hits” from general internet searching cannot prove that an HOA is not applicable to a Subject Property.
4.It is possible that a Subject Property has never been subject to a prior mortgage. Even where a prior mortgage does exist, it is possible for the lender to have failed to include a PUD rider in the mortgage, even if the property had been subject to an HOA.
d.Additional Information Regarding Scope of Review. [(5) through (8) of Item 4]

We have not undertaken any data integrity or other review beyond what is described herein, nor was our review undertaken for the purpose of:

1.Satisfying any criteria for due diligence published by a nationally recognized statistical rating organization, or
2.Making any findings with respect to:
i.Whether the origination of the Mortgage Loans conformed to, or deviated from, stated underwriting or credit extension guidelines, standards, criteria, or other requirements,
ii.The value of the collateral securing the Mortgage Loans,
iii.Whether the originators of the Mortgage Loans complied with federal, state or local laws or regulations, or
iv.Any other factor or characteristic of the Mortgage Loans that would be material to the likelihood that the issuer of the certificates that are secured by the Mortgage Loans will pay interest and principal in accordance with applicable terms and conditions.

Our HOA Discrepancy Review is limited to the procedures set forth in (c) above. Although we believe these procedures to be customary residential title practice to locate evidence that a property may be subject to an active HOA, we make no representation regarding the sufficiency

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of the procedures described in (c) above, either for the purpose for which this report has been requested or for any other purpose.

II.Findings and Conclusions from Our Review (Item 5 of Form ABS Due Diligence-15E)

Based upon the HOA Diligence Review conducted in accordance with the procedures outlined in Part I above, and assuming the accuracy of the information contained in the documents described therein, we concluded, as set forth in more detail in Schedule I attached hereto and subject to the limitations set forth herein, that:

To our knowledge, after inquiry as described above, except as set forth on Schedule I as indicated in the “Updated Designation” column, none of the Subject Properties set forth on Schedule I is subject to an active HOA.

Our conclusions are limited to the matters expressly stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated herein. The conclusions expressed herein are given only as of the dates set forth on Schedule I, and we undertake no responsibility to update or supplement this report after the date hereof for any reason.

This report was prepared solely for the benefit of the addressees set forth above. It should not be relied on in any manner or for any purpose by any other person or entity, except for placement agents involved directly with the placement of this securitization transaction, including prospective investors or ratings agencies in connection with the offering referenced above (collectively, “Third Parties”). Accordingly, this report was not intended to create, and shall not be deemed to create any benefits, rights, duties, or obligations in or to, any such Third Parties.

 

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Except as required by law, this report may not be quoted in whole or in part, including in any prospectus or offering memorandum, without our prior written consent. In addition, this report is not assignable to any person or entity without our prior written approval.

  REALtech Title LLC, a Delaware limited liability company
     
     
  By: /s/ Jennifer A. Battista
  Name:   Jennifer A. Battista
  Title:     Senior Vice President
  Date:     June 25, 2021
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Schedule I

 

Property Code State   Description of Discrepancy Updated Designation (HOA or NON-HOA)
921231 FL   Potential HOA NON-HOA
921128 FL   Potential HOA NON-HOA
921048 FL   Potential HOA NON-HOA
920929 FL   Potential HOA NON-HOA
921625 FL   Potential HOA NON-HOA
921056 FL   Potential HOA NON-HOA
921067 FL   Potential HOA NON-HOA
921085 FL   Potential HOA NON-HOA
921241 FL   Potential HOA NON-HOA
921249 FL   Potential HOA NON-HOA
921256 FL   Potential HOA NON-HOA
921245 FL   Potential HOA NON-HOA
921679 FL   Potential HOA NON-HOA
921688 FL   Potential HOA NON-HOA
921711 FL   Potential HOA NON-HOA
921527 FL   Potential HOA NON-HOA
921543 FL   Potential HOA NON-HOA
921546 FL   Potential HOA NON-HOA
921549 FL   Potential HOA NON-HOA
921551 FL   Potential HOA NON-HOA
921643 FL   Potential HOA NON-HOA
921650 FL   Potential HOA NON-HOA
922059 FL   Potential HOA NON-HOA
922070 FL   Potential HOA NON-HOA
921342 FL   Potential HOA NON-HOA
921836 FL   Potential HOA NON-HOA
921373 FL   Potential HOA NON-HOA
921386 FL   Potential HOA NON-HOA
921473 FL   Potential HOA NON-HOA
921443 FL   Potential HOA NON-HOA
921453 FL   Potential HOA NON-HOA
921454 FL   Potential HOA NON-HOA
921297 FL   Potential HOA NON-HOA
921482 FL   Potential HOA NON-HOA
921517 FL   Potential HOA NON-HOA
920952 FL   Potential HOA NON-HOA
920954 FL   Potential HOA NON-HOA
920961 FL   Potential HOA NON-HOA
920804 FL   Potential HOA NON-HOA
920792 FL   Potential HOA NON-HOA
920823 FL   Potential HOA NON-HOA
920832 FL   Potential HOA NON-HOA
920834 FL   Potential HOA NON-HOA
921890 FL   Potential HOA NON-HOA
921892 FL   Potential HOA NON-HOA

 

 

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921901 FL   Potential HOA NON-HOA
921013 FL   Potential HOA NON-HOA
921863 FL   Potential HOA NON-HOA
921864 FL   Potential HOA NON-HOA
921883 FL   Potential HOA NON-HOA
921887 FL   Potential HOA NON-HOA
921931 FL   Potential HOA NON-HOA
921938 FL   Potential HOA NON-HOA
921949 FL   Potential HOA NON-HOA
921094 FL   Potential HOA NON-HOA
921095 FL   Potential HOA NON-HOA
921096 FL   Potential HOA NON-HOA
921104 FL   Potential HOA NON-HOA
921107 FL   Potential HOA NON-HOA
921995 FL   Potential HOA NON-HOA
921997 FL   Potential HOA NON-HOA
921571 FL   Potential HOA NON-HOA
921573 FL   Potential HOA NON-HOA
921577 FL   Potential HOA NON-HOA
921580 FL   Potential HOA NON-HOA
921586 FL   Potential HOA NON-HOA
921587 FL   Potential HOA NON-HOA
920875 FL   Potential HOA NON-HOA
921793 FL   Potential HOA NON-HOA
922079 FL   Potential HOA NON-HOA
922080 FL   Potential HOA NON-HOA
921956 FL   Potential HOA NON-HOA
922081 FL   Potential HOA NON-HOA
922082 FL   Potential HOA NON-HOA
922083 FL   Potential HOA NON-HOA
922084 FL   Potential HOA NON-HOA
922086 FL   Potential HOA NON-HOA
922087 FL   Potential HOA NON-HOA
922089 FL   Potential HOA NON-HOA
922095 FL   Potential HOA NON-HOA
922097 FL   Potential HOA NON-HOA
922098 FL   Potential HOA NON-HOA
922105 FL   Potential HOA NON-HOA
922111 FL   Potential HOA NON-HOA
922112 FL   Potential HOA NON-HOA
920901 GA   Potential HOA NON-HOA
920997 GA   Potential HOA NON-HOA
922063 GA   Potential HOA NON-HOA
921848 GA   Potential HOA NON-HOA
921449 GA   Potential HOA NON-HOA
921451 GA   Potential HOA NON-HOA
921762 GA   Potential HOA NON-HOA
921774 GA   Potential HOA NON-HOA

 

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921300 GA   Potential HOA NON-HOA
921494 GA   Potential HOA NON-HOA
921497 GA   Potential HOA NON-HOA
921516 GA   Potential HOA NON-HOA
921407 GA   Potential HOA NON-HOA
921411 GA   Potential HOA NON-HOA
920941 GA   Potential HOA NON-HOA
920805 GA   Potential HOA NON-HOA
920808 GA   Potential HOA NON-HOA
920839 GA   Potential HOA NON-HOA
920846 GA   Potential HOA NON-HOA
921003 GA   Potential HOA NON-HOA
921940 GA   Potential HOA NON-HOA
921100 GA   Potential HOA NON-HOA
921584 GA   Potential HOA NON-HOA
922000 GA   Potential HOA NON-HOA
921794 GA   Potential HOA NON-HOA
921813 GA   Potential HOA NON-HOA
921968 GA   Potential HOA NON-HOA
922021 GA   Potential HOA NON-HOA
922118 GA   Potential HOA NON-HOA
922125 GA   Potential HOA NON-HOA
922126 GA   Potential HOA NON-HOA
922128 GA   Potential HOA NON-HOA
922133 GA   Potential HOA NON-HOA
922136 GA   Potential HOA NON-HOA
922138 GA   Potential HOA NON-HOA
922140 GA   Potential HOA NON-HOA
922142 GA   Potential HOA NON-HOA
922149 GA   Potential HOA NON-HOA
922150 GA   Potential HOA NON-HOA
922151 GA   Potential HOA NON-HOA
922154 GA   Potential HOA NON-HOA
921521 IL   Potential HOA NON-HOA
922075 IL   Potential HOA NON-HOA
921634 IL   Potential HOA NON-HOA
920841 IL   Potential HOA NON-HOA
920871 IL   Potential HOA NON-HOA
921035 CO   Potential HOA NON-HOA
920893 CO   Potential HOA NON-HOA
920895 CO   Potential HOA NON-HOA
921616 CO   Potential HOA NON-HOA
921242 CO   Potential HOA NON-HOA
921243 CO   Potential HOA NON-HOA
921666 CO   Potential HOA NON-HOA
921761 CO   Potential HOA NON-HOA
921763 CO   Potential HOA NON-HOA
921294 CO   Potential HOA NON-HOA

 

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921298 CO   Potential HOA NON-HOA
921423 CO   Potential HOA NON-HOA
921893 CO   Potential HOA NON-HOA
921872 CO   Potential HOA NON-HOA
921103 CO   Potential HOA NON-HOA
921283 CO   Potential HOA NON-HOA
921979 CO   Potential HOA NON-HOA
922192 CO   Potential HOA NON-HOA
922194 CO   Potential HOA NON-HOA
922204 CO   Potential HOA NON-HOA
922210 CO   Potential HOA NON-HOA
922224 CO   Potential HOA NON-HOA
921563 MN   Potential HOA NON-HOA
920790 MN   Potential HOA NON-HOA
921042 MN   Potential HOA NON-HOA
921724 MN   Potential HOA NON-HOA
921736 MN   Potential HOA NON-HOA
920894 MN   Potential HOA NON-HOA
920914 MN   Potential HOA NON-HOA
920967 MN   Potential HOA NON-HOA
920970 MN   Potential HOA NON-HOA
921064 MN   Potential HOA NON-HOA
921086 MN   Potential HOA NON-HOA
921253 MN   Potential HOA NON-HOA
921701 MN   Potential HOA NON-HOA
921555 MN   Potential HOA NON-HOA
922060 MN   Potential HOA NON-HOA
922071 MN   Potential HOA NON-HOA
921332 MN   Potential HOA NON-HOA
921846 MN   Potential HOA NON-HOA
921374 MN   Potential HOA NON-HOA
921319 MN   Potential HOA NON-HOA
921500 MN   Potential HOA NON-HOA
921511 MN   Potential HOA NON-HOA
920806 MN   Potential HOA NON-HOA
920858 MN   Potential HOA NON-HOA
921108 MN   Potential HOA NON-HOA
921986 MN   Potential HOA NON-HOA
920867 MN   Potential HOA NON-HOA
920876 MN   Potential HOA NON-HOA
921972 MN   Potential HOA NON-HOA
922026 MN   Potential HOA NON-HOA
922232 MN   Potential HOA NON-HOA
922234 MN   Potential HOA NON-HOA
922242 MN   Potential HOA NON-HOA
921075 NC   Potential HOA NON-HOA
922052 NC   Potential HOA NON-HOA
922250 NC   Potential HOA NON-HOA

 

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922258 NC   Potential HOA NON-HOA
920879 SC   Potential HOA NON-HOA
921722 AZ   Potential HOA NON-HOA
920898 AZ   Potential HOA NON-HOA
920980 AZ   Potential HOA NON-HOA
920990 AZ   Potential HOA NON-HOA
921619 AZ   Potential HOA NON-HOA
921068 AZ   Potential HOA NON-HOA
921084 AZ   Potential HOA NON-HOA
921235 AZ   Potential HOA NON-HOA
921680 AZ   Potential HOA NON-HOA
921685 AZ   Potential HOA NON-HOA
922050 AZ   Potential HOA NON-HOA
921820 AZ   Potential HOA NON-HOA
921474 AZ   Potential HOA NON-HOA
921760 AZ   Potential HOA NON-HOA
921431 AZ   Potential HOA NON-HOA
920801 AZ   Potential HOA NON-HOA
921894 AZ   Potential HOA NON-HOA
921897 AZ   Potential HOA NON-HOA
921921 AZ   Potential HOA NON-HOA
921015 AZ   Potential HOA NON-HOA
921866 AZ   Potential HOA NON-HOA
921927 AZ   Potential HOA NON-HOA
921280 AZ   Potential HOA NON-HOA
921802 AZ   Potential HOA NON-HOA
921160 AZ   Potential HOA NON-HOA
921980 MD   Potential HOA NON-HOA
921723 MO   Potential HOA NON-HOA
920899 MO   Potential HOA NON-HOA
921652 MO   Potential HOA NON-HOA
921853 MO   Potential HOA NON-HOA
921503 MO   Potential HOA NON-HOA
920813 MO   Potential HOA NON-HOA
921878 MO   Potential HOA NON-HOA
921884 MO   Potential HOA NON-HOA
920815 PA   Potential HOA NON-HOA
922001 PA   Potential HOA NON-HOA
921852 TN   Potential HOA NON-HOA
921435 TN   Potential HOA NON-HOA
921106 TN   Potential HOA NON-HOA
921200 TN   Potential HOA NON-HOA
921856 TX   Potential HOA NON-HOA
921524 TX   Potential HOA NON-HOA
920964 TX   Potential HOA NON-HOA
921214 TX   Potential HOA NON-HOA
921218 TX   Potential HOA NON-HOA
921672 CO   Potential HOA HOA-Inactive

 

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920829 MO   Potential HOA HOA-Inactive
921566 TX   Potential HOA HOA-Inactive

 

 

 

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