Homeowners and Condominium Association Credit Reporting Service

1. PRESENTED BY: COMMUNITY ASSOCIATION
MANAGEMENT
REDUCE DELINQUENCIES AND LEGAL FEES WITH CREDIT
REPORTING SERVICES
Reward Timely Payments and Reduce Delinquencies by Reporting HOA and Condominium Assessment Payments to Credit Bureaus

2. The Collections Problem
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3. The Problem for the Homeowner
Prospective buyers look at the financial health of the Association
Government Entities and Mortgage Companies also look at the
Association’s financial health, this determines loan worthiness
An Associations financial health may disqualify potential buyers from
receiving a loan
Deferred maintenance, due to lack of timely funds, reduces property
values
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4. The Problem for the Association
Assessments get put at the bottom of the stack to pay each month
Homeowners know they can pay their assessment last
This escalates in market downturns like the housing crisis of 2008
Directly affects how the association budgets each year
Overspending on collections fees/legal expenses
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5. Associations rely on predictable and
steady cash flow!
Homeowners paying on time is the most critical component for the health of an Association
Delinquent assessments drain time and resources away from other Board initiatives, which
can result in deferred property maintenance or putting off projects due to lack of funds
Steady cash flow allows everyone to get paid, and how Associations Build Reserves or Get
Loans for improvements
Remedies such as liens and collections take time, are costly and don’t have an immediate
impact on the property owner, thereby hurting overall community morale
Associations need a powerful financial management tool to systematically prevent and
quickly remedy delinquent accounts
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6. Consumers Monitor Their Credit
Millions of consumers monitor their credit by utilizing credit monitoring
services from their credit card company or third party provider
Credit reports have become one of the leading risk and payment
performance indicators for lenders, creditors, and debt owners
Community Associations Institute (CAI) estimates that associations
collect approximately $70 Billion per year in assessment payments
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7. Associations can use reporting of
assessments to the credit bureaus as a
reward and incentive
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8. Reward Timely Payments
Some assessments are larger than auto and credit card payments
Currently, assessment payment status is not included in Credit
Reports or Credit Scores
Monthly reporting of timely payments can increase credit scores and
provide property owners with additional benefits outside of their
association
Timely payment remarks on credit will last up to 7 years
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9. How the reporting process works
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Assessments are reported as
Delinquent when they are 30 days
late.

10. Association Benefits
Empowered with a banking and credit industry-
standard financial tool that impacts property owner’s
credit reports
Reward property owners that pay on time with
benefits outside of the association such as positive
impact to credit report
Association spends less in legal fees for collections
and improves cash flow
Utilize a fully transparent and equal treatment based
policy to manage assessment payments
Can help increase property owner use of Automatic
payment options (saving on billing statement costs)
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11. Property Owners Benefits
Timely Association payments could help raise
credit scores
Low Association delinquency rates make
properties easier to refinance and sell
Reduce regular or special assessments or
eliminate increases due to lower delinquency
rates
Association spends less time on collections and
more time on other critical Association matters
Lower delinquency rates provides more
resources for the maintenance of common areas
– Improved Community Morale!
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12. What are the legal considerations
when reporting to a Credit Bureau?
Association assessments will be classified as
revolving debt payments
Associations have the authority to refer
delinquent accounts to collection agencies and to
report positive and negative payment histories
The Federal and State Fair Credit Reporting Acts
permit Associations to report payment histories
The Fair Credit Reporting Act (FCRA) provides
payment data furnishers with immunity from
individual consumer lawsuits for violations of the
FCRA. Only regulatory agencies can pursue
violations. Associations have the authority to report but need a solution that complies with
financial and data management regulations
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13. How Much does it Cost?
Monthly Credit Reporting is Free for non-delinquent Homeowner
Accounts
Delinquent Accounts are charged at $15.00 per month
Delinquent costs can sometimes be charged back to the homeowner*
resulting in zero cost to the association
Late fees can offset the cost, resulting in zero cost to the association
*depends on your Associations governing documents and whether they specifically
allow it Copyright 2017 Community Association Management, Limited - All Rights Reserved

14. Common Questions
Q: Do you need SSN’s, DOB, Medical Records, Bank Accounts?
A: We do not want them, or need them to report. The system matches the owners based on specific criteria that
doesn’t require a social security number or date of birth.
Q: When are delinquencies reported?
A: Assessments are reported as delinquent when they are 30 days late, and each 30 day period they remain unpaid.
Q: Can you only report on the delinquent Homeowners?
A: No, because of fair and equal treatment of all Homeowners, everyone must be reported every month.
Q: Can you report on homes that are rented out in an Association?
A: Yes, unless they are owned by an LLC or Trust
Q: Who are you reporting to?
A: We are currently reporting to Equifax
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15. Common Questions
Q: What if something is reported incorrectly?
A: We provide updates to Equifax daily with corrections. All disputes are handled by the Credit Reporting Agency.
Q: Is there a minimum number of homes per Association?
A: No, we report on 5 or 5,000 homes
Q: When do we notify the homeowners?
A: Good business practice suggests a 30 day notification to all Homeowners in writing once the Association has signed up.
Q: What if we don’t have delinquencies?
A: This is also a proactive solution in case of a market downturn, and a way to positively reward homeowners who pay on
time with positive remarks to their credit report.
Q: Should we stop filing lien/foreclosure actions?
A: No. When Credit reporting is used, the number of delinquent homeowners will decrease. When used in conjunction with
lien and foreclosure you will be able to collect from those that may be unconcerned with their credit score.
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16. Summary
Proven effective by multi-billion dollar
industries
Incentivizes Homeowners to pay on time
Builds Credit Profile for Homeowners
who pay on time
An Immediate action every month, for
monthly cash flow
Inexpensive solution
Can reduce legal and collection fees
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17. Ready to Get Started?
Contact Martin Stinson
704-307-4535
or Sign up at:
http://communityassociationmanagement.com/credit-reporting-services/
Copyright 2017 Community Association Management, Limited - All Rights Reserved