DS News

67 told DS News. "Some customers obtain an understanding of possible relief options that don't exist and are understandably upset with the options that do exist." Hughes added, "At the outset of the crisis, RoundPoint developed and posted on our COVID-19 landing page, an online tool allowing impacted customers to quickly and easily set up a forbearance plan themselves. e online experience is detailed in explaining how the program works, the options that currently exist to address the forborne payments when the plan term ends, and the reality that other programs may become available in the interim. Our customer service associates have been trained to help our customers understand the same information. Both the online and the on-phone experience ends with an assurance that we will touch base with them regularly throughout the forbearance plan to check in on them and to provide any updates we may have." ServiceMac's Zuniga recommended using websites to provide information, particularly considering the volume of communication. However, even the best website information can leave the customer confused because there are several different options, and each borrower's situation is different. "We still feel one of the best ways is to talk with our customer and educate them on what a forbearance is and what it isn't," Zuniga said. "ere's a lot of information out there. Our job isn't to tell the customer what to do, but to listen to the customer about what they are going through, assisting them, helping them with their questions about the forbearance or the CARES Act and then helping them make what is the best decision for them." ServiceMac also shifted part of its call monitoring team to focus on forbearance- related calls to adjust scripting in order to better aid borrowers. THE ROAD AHEAD e COVID-19 pandemic's effects on the economy, the American homeowner, and the mortgage servicing industry are likely to be studied and reexamined for several years after the crisis passes. "We're trying to understand where things will stand post-COVID," said Allen Price, SVP at BSI Financial Services. "Some borrowers will get their jobs back; others will go back at reduced hours." Still others will find themselves looking for new jobs, or on extended unemployment. With so many unknowns regarding the pandemic, the economy, and the job market playing out over the next several months, Price said BSI is closely monitoring its portfolio for forbearances, defaults, and delinquencies. Caruso also observed that many financial institutions jettisoned their servicing businesses following the last economic downturn. Will that trend reoccur? Only time will tell. In the meantime, servicers and subservicers need to follow best practices now in compliance, communication, and operations to ensure that they minimize any impact to their businesses until payments and defaults return to more normal levels. Mason speculates that it will take at least a year to stabilize the market. Regulators will carefully review what servicers and subservicers did during the height of the crisis, so it will be critical to have the right documentation for the right deferral plans. ough there are some similarities to the sharp rise in delinquencies during the Great Recession, there are also enough differences that it's hard to have a handle on how things will look post-pandemic, Price said. Caruso added that, since there are so many unknowns, the GSEs should consider allowing borrowers to have multiple modifications. at would help those who could get jobs back as the economy reopens but could be out of work again if the pandemic gets worse, leading to future shutdowns. Phil Britt started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid- 1980s, before joining Savings Institutions magazine in 1992. When that publication moved its offices to Washington, D.C. in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. "We want to make sure that the customer fully understands the different options. We want to make sure that they know what forbearance looks like." —Bob Caruso, President and CEO, ServiceMac

• Cover