First-to-market, one-step process automates and simplifies fixture-related filings
Wolters Kluwer Compliance Solutions’ introduction of iLien ResiFixture™ is playing a critical step in helping lenders safeguard their interests for loans associated with fixtures physically attached to a residential property.
“iLien ResiFixture provides residential lenders a simpler path to securing their fixture-related assets,” notes Vikram Savkar, Executive Vice President and General Manager, Wolters Kluwer Compliance Solutions. “Importantly, it represents the latest innovation by Wolters Kluwer in transforming the lending space through enhanced technology and automated processes.”
Collateral such as solar panels, HVAC equipment, pools and spas, and other items not easily removable from a property fall under the category of assets protected under this newly launched solution.
When it comes to securing fixture-related interests, lenders face numerous obstacles to achieving the needed level of protection. Challenges include problems building and maintaining a comprehensive knowledge of varying requirements, the lack of easily accessible, reliable property information, long turnarounds and relatively frequent jurisdictional filing rejections. There are often filing inaccuracies, and higher costs associated with manually processing high volumes.
As a result, there is the potential loss of first position on that collateral. “We are excited to be the first in the market to offer residential lenders this innovative, one-step filing solution that addresses these concerns,” says Savkar.
Securing the additional layer of protection for fixture-related collateral typically involves filing a UCC-1 (Uniform Commercial Code Financing Statement) with both the state and county. These filings can allow lenders to obtain priority over another entity with an interest in the same property, while mitigating the risk of debtor bankruptcy and loss of equipment. But they require an additional level of property information and varying filing steps at the state and county levels, posing a set of unique challenges for lenders.
The iLien ResiFixture service alleviates these challenges, leveraging automation to transform the filing process. Lenders need only provide the essential UCC filing information, while the platform’s logic handles the legal description search and required UCC filing in the appropriate jurisdiction, with Wolters Kluwer experts handling any remaining steps, including rejections. Ultimately, this approach reduces costs, saves time, and mitigates lender risk, all with full transparency.