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e U.S. is now faced with an unprecedented health crisis: the
COVID-10 pandemic. For an industry that has weathered both the
2008 financial crisis and a spate of damaging natural disasters, the
existing playbooks may offer helpful guidance, but much of the current
situation is unexplored territory that demands new mindsets and close
examination of existing protocols and philosophies.
With tornadoes sweeping across the
Southeast U.S. and hurricane season fast
approaching, havoc from more traditional
natural disasters may soon be overlapping
with the ongoing impact of the novel
coronavirus. How are servicers, lenders,
lawmakers, and service providers preparing
for storm season … while also dealing with a
global—and ongoing—pandemic?
CHANGING THE PLAYBOOK
As COVID-19 continues to reshape
our daily lives and workflows, the mortgage
industry is feeling the pressure of forbearance
programs, staffing impacts, remote working,
and potential liquidity shortfalls. Adding
likely new rounds of natural disasters will
only complicate things even further.
Homeowners are going to be hard pressed
as well. It's challenging enough to deal with
the strain and stress of hurricane damage to
your home, for instance, but how much more
difficult will it be when combined with social
distancing, possible loss of work, and other
factors brought on by the pandemic?
"ere will be other disasters that happen
in the next several months. ere always
are. And to add that on top of COVID, it
just complicates everything," said Samantha
Montano, an emergency management
researcher at the University of Nebraska
Omaha, in a recent Scientific American article.
"Customers are overwhelmed with many
other things in a disaster situation, not just
their mortgage," said Dana Dillard, EVP,
Corporate Social Responsibility at Mr.
Cooper Group.
While valuable lessons can be ported
Cover Story By: Seth Welborn
FIGHTING
ON TWO
FRONTS
