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COVID-19 is causing more financial hardship for many homeowners
than the Great Recession, according to mortgage and servicing experts.
e April unemployment rate hit 14.7%, the highest figure since the
1930s, during the depths of the Great Depression. Even after that figure
was reported, U.S. Treasury Secretary Steve Mnuchin said in an interview
that the figure could get worse before it gets better, and that the actual
unemployment rate—factoring in people who have quit looking for work
and the underemployed—could be as high as 25%.
In addition, more than 3.5 million
mortgage borrowers had asked for
forbearance as of late April, according to the
Mortgage Bankers Association. e volume
of borrowers seeking forbearance or other
financial assistance far surpasses the demands
of the Great Recession.
A recent DS News webinar entitled
"Forbearance Agreements: Impact and Best
Practices," sponsored by Treliant, explored all
aspects of recently implemented forbearance
plans from a mortgage servicer perspective,
including processes, meeting regulatory
requirements without challenges, and
preparing for the upcoming modification
wave at the end of the period. With that
event as a launching-off point, DS News now
brings you an expended look at this topic,
featuring insights from companies such as
Bayview Loan Servicing, BSI Financial
Services, Flagstar Bank, RoundPoint
Mortgage Servicing, ServiceMac, and more.
"Customers are mostly seeking payment
relief, which was available from the start with
Cover Story By: Phil Britt
THE
ONCOMING
TSUNAMI
