Clear Capital Launches Property Inspection Service

Code compliance is big-ticket risk item for mortgage servicers these days, when it comes to managing foreclosed real estate; many local governments are upping the ante on maintenance, and levying hefty fines for code violations — not only because urban blight has become a front-page news story, but because of a need to offset declines in property tax revenues. None of which means that mortgage servicers are lining up to pay the fines and fund city coffers; instead, many are looking for ways to better manage the REO on their books to avoid such levies. But doing so can be a challenge for a national servicing operation that often lacks the local eyes needed to spot potential fines before county assessors do. Enter Clear Capital, a property valuations company, which said Tuesday that it was rolling out what it’s calling “the Condition Conformity Inspection” — a report that helps banks and lenders determine whether their vacant, bank-owned homes are at risk of contributing to urban blight. It offers an assessment of the property condition in relation to its neighborhood, allowing loan servicers to confidently determine whether additional maintenance is necessary. “From listening to our loan servicing customers, we understand their need to know the condition of their properties in default and how that condition positively or negatively affects the neighborhood,” said Kevin Marshall, Clear Capital CIO. The Condition Conformity Inspection, on the surface, appears to be a broker price opinion on steriods — marrying subject property and neighborhood information into a single form that includes images of the subject property, street views, the ten closest neighboring homes, and a map of the neighborhood. These inspections also include narratives on the condition of the subject, its conformity to the neighborhood, and possible deferred maintenance issues, the company said in a press statement. The inspections are carried out by the same brokers and agents that perform the Clear Capital’s BPO orders. The company didn’t specify further information on fees tied to the new reporting service. For more information, visit http://www.clearcapital.com.