In the world of commercial lending, lenders face an array of complex legal and regulatory compliance requirements, where filing a lien properly requires absolute perfection of every detail. If a lender files a lien on a loan containing a single borrower misspelling, an inadvertent space, or a misplaced comma, it can mean the difference of a significant amount of money when trying to collect on those secured assets. So explains Wolters Kluwer Compliance Solutions’ Suzanne Konstance, describing the intricacies of lien management in a recent episode of Worldwide Business with kathy ireland®.
Konstance, a vice president and leader of the Lien Solutions segment of Wolters Kluwer Compliance Solutions, notes that lien perfection today requires lenders to do their homework with precision on every lien filing and to employ continued vigilance throughout the loan’s lifecycle.
“The lender needs to do lots of research on each borrower—and reflect those details in the lien filing with perfection, from sharing basic borrower information like their home address, to capturing key details such as the size and type of other loans that the borrower may have in play,” says Konstance. “Once you have those records, you have to do everything perfectly when you file financing statements at the secretary of state for a UCC lien. Even if you’re off by a space or a misplaced period, it might mean that you won’t have the opportunity to collect on those assets in the event of a default.”
Konstance reminds viewers that there is additional complexity because Uniform Commercial Code (UCC) liens don’t cover every secured asset type. “Accordingly, we offer an array of solutions, from our iLien core product, which a lender can use to file all of their UCC liens and conduct all of their searches on a debtor, to our iLien Motor Vehicle solution that helps lenders manage motor vehicle liens and titles, to iLienRED, a real estate solution where you can manage your mortgages, create your liens for real property, do assignments and all the things you need to do around real property, easily, without error, and with good quality.”
The segment concludes with an overview of the benefits a lien management platform can bring to the table, where, she explains, “a lender can access all of their UCC information—including current and prospective borrower information—in one place, allowing lenders to make accurate decisions on who to lend to and how much to lend. It’s a great tool for lenders to maximize their lending potential and grow their business.”
“The solutions that Suzanne highlights on this episode are helping our lender clients manage portfolio risk, reinforcing Wolters Kluwer’s longstanding commitment to product innovation and leadership in UCC lien management and vehicle titling solutions for the lending industry,” said Steve Meirink, Executive Vice President and General Manager for Wolters Kluwer Compliance Solutions.
Worldwide Business with kathy ireland® is an award-winning business program that provides viewers an in-depth opportunity to find solutions to industry problems from some of the top business leaders from across the globe that has featured more than 5,000 companies participating on over 500 episodes.
Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, increase efficiency, and produce better business outcomes.