Las Vegas Homes News: Systems for Liens Irritates Agency

There
was a complaint to Gov. Brian Sandoval’s office by a federal regulatory agency
regarding the pending legislation that sets up a regulatory framework for liens
imposed by collection agencies on foreclosed Las Vegas homes.

To
recover delinquent association dues, the legislation deals with the practice of
Las Vegas home owners associations
hiring agencies. For the agency’s collection efforts, they attached thousands
of dollars in fees. And those fees must be settled before a house can be sold.

Under
the pending bill, the fees from the collection agencies will continue to be
treated as “superiority” liens against houses, which give the Las Vegas home owner groups and the
collection agencies the right to gather fees before even first-mortgage lenders
are paid.

The
concern has been the subject of regulations, court orders and now legislation supported
by state Sen. Allison Copening, D-Las Vegas.

On
an April 26 letter by the Federal Housing Finance Agency complains that
Copening’s bill could have “unintended consequences.” The Federal Housing Finance
Agency regulates the mortgage finance companies Fannie Mae and Freddie Mac.
Lucas Foletta, the governor’s general counsel was to whom the letter was
addressed and signed by the federal agency General Counsel Alfred Pollard.

A
suspected $1,950 cap on collection was included to the several features of the
bill that Pollard criticized.

Six
months of unsettled assessments to homeowner associations have been paid by
Fannie and Freddie Mac for a repossessed Las Vegas homes but not the attorneys’ fees and
collection agency fees, expresses Pollard.

The
bill permits for “reasonable” attorney fees and collection fees to be included
in superiority liens, noticed Pollard.

And
speaking with experience, Pollard said that in general, the attorney’s fees and
collection costs are much higher than the amount of delinquent assessments.

Senior
Vice President for RMI Management, Chris Yergensen, and Red Rock Financial
Services (its subsidiary collection agency) disagreed with Pollard.

Rather
than creating a new legal regime for collection agency fees, Yergensen said
that Copening’s bill clarifies the law.

Yergensen
has also said that the superiority lien dates back to a 1992 law and was
addressed in a 2006 District Court decision.

A
regular contributor to Democrats, Premsrirut, says that the Republicans and
some Democrats contest Copening’s bill. Although, the Democratic leadership
backs Copening’s bill said Premsrirut.

Mary-Sarah
Kinner, governor’s press secretary, stated that the Sandoval administration has
not taken a position on the bill.