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IT’S STILL TO EARLY TO KNOW
By
Rafael Aquino
Published June 24, 2020
One of
the biggest challenges that we must pay very close attention to is
how the mortgage forbearances will impact our communities? The
Mortgage Bankers Association's (MBA) latest Forbearance
and Call Volume Survey revealed that the total
number of loans now in forbearance increased from 8.53% of
servicers' portfolio volume in the prior week to 8.55% as of June 7,
2020. According to MBA's estimate, almost 4.3 million homeowners are
now in forbearance plans. According to CoreLogic, out of the ten
large metropolitan areas in the US, Miami had the highest rate
(5.2%) of mortgages at least thirty days past due.
These
numbers are alarming because, at the moment, associations may only
see a small uptick in delinquencies; however, that could be a
cover-up because of the forbearance program. We need to be asking
ourselves, what will happen with the forbearance program is
exhausted? Will those same owners decide to stop paying the
association? What will happen if the recovery takes longer than
expected?
As an
organization, we are already taking steps to help our clients plan
accordingly. Depending on the client and its resident type, we are
making specific recommendations to either amend their current budget
or preparing their 2021 budget for the potential impact. Some of the
steps we are taking are as follows:
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Collection Policy: Start following the steps outlined within the
documents. Further, we are making courtesy calls to those owners
that are falling behind and what steps can be taken to get them
back on track.
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Bad Debt Line Item: This line item is used to cover for those
owners who are not paying. Depending on the association, we are
recommending adding 3% - 10%.
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Covid-19 - Adding a line item for all expenses related to
Covid-19. We want to be transparent with our residents and
reflect any cost increases.
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Tech/Innovation - Looking at services that we can automate to
help reduce costs, such as online voting, automated attendants,
etc.
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Insurance – Increases are coming and budgets must be adjusted
for it.
There are other specific areas we are looking into; however, it is
based on the particular client. If you'd like to know more, don't
hesitate to contact me. I will recommend not falling into the trap
of doing nothing because you'll end up paying for it heavily in the
future. It would be wiser to confront the situation head-on and
communicate your actions and reasons with your members.
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As the Co-Founder and CEO
of Affinity Management Services, Rafael P. Aquino leads his team to
redefine excellence. They serve community associations
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and effectively with
dedication and passion. Rafael’s energy and positive
spirit is the foundation of Affinity Management
Services’ company culture, which instills enthusiasm and
excitement when providing expert advice to its board
members and relieving the day-to-day burdens of running
a community association.
Since 2007, Rafael has
developed a work culture that values responsive and
high-quality services. He has led his team by following
a proactive vs reactive philosophy. The same approach
Rafael instills in the day to day operations of each
association. Today, Affinity Management Services
maintains its success and benefits as a result of the
foundation Rafael has built and continues to foster by
providing educational seminars, continuing education
classes for association managers and board members
alike.
Rafael and his team help condominium and homeowners’
associations save money and improve their communities.
His calm, personable, and service-oriented nature helps
him to establish strong relationships with ease. Rafael
is known as a sincere and honest leader who looks out
for the best interests of his clients and communities,
and he strongly advocates for their needs. His role
requires coordination and communication, as such he
takes logical and intelligent steps to approach
challenges head-on.
As a graduate of Florida International University’s
electrical engineering program and a licensed community
association manager, Rafael’s education and skills equip
him with unique insights to tackle complex problems
through critical thinking. He understands how each
component within a system works together in order to
effectively arrive at solutions, techniques, and
conclusions. Therefore, as he manages the multiple
challenges of running a community association management
company, he understands how each property is its own
unique system and tailors’ specific services to assure
that all their needs are met.
For more information about Rafael P. Aquino and Affinity
Management Services please visit
www.ManagedByAffinity.com or call 1-800-977-6279
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Doral Office: 8200 NW 41st ST
Suite 200
Doral, FL 33166
Broward Office: 150 S Pine Island RD Suite 300
Plantation, FL 33324
O: 800-977-6279 ● F: 305-325-4053
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