52
For mortgage servicers, the challenges never seem to end. After
several years of wildfires, tornados, hurricanes, floods and other
natural disasters, a new disaster has come along to top them all.
And the worst part is that no one knows with certainty when the
pandemic or its impact on the economy will end.
What we do know is that a wave of
delinquencies and defaults is almost certainly
on its way. While there are multiple foreclosure
moratoriums in place to prevent Americans
from losing their homes during the crisis,
it's likely that many will continue to struggle
financially when they end. Which means
servicers should be preparing now for what
happens when the smoke clears.
TAKING INVENTORY
On March 18, the federal government
ordered a moratorium on foreclosures and
evictions and put out the word to borrowers
to contact their servicers about forbearance
options on their loans. e FHA, HUD, the
USDA, and Fannie Mae and Freddie Mac also
announced similar freezes. Some banks have
also announced their payment moratoriums,
some as long as 120 days, while others have
suspended payments for certain borrowers.
ese steps are necessary to ensure millions
of Americans who are facing job layoffs as a
result of the pandemic are able to stay in their
homes. At some point, however, the relief will
end, and it will most likely end before many
borrowers have fully recovered financially.
When that happens, servicers will need to
be ready to handle a surge in requests from
POST-MORATORIUM
PLANNING BEGINS
NOW
Feature By: Allen Price
