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71 options and determine which one(s) work best for them. Borrowers may have several options: 1. Repay the loan in one lump sum if they can (perhaps by withdrawing funds from their 401(k), IRA, or other retirement plan). 2. Extend the forbearance period. As of September 27, 70% of the loans in forbearance are in a forbearance extension, according to the MBA. 3. Take advantage of a loss mitigation plan. is may include a repayment plan to keep borrowers in their homes, or loan modifications such as writing off part of the loan or extending the terms of the original loan. If a loss mitigation plan is the best option, borrowers will complete a worksheet to allow the servicer to assess income, the size of the loan, and whether a repayment plan or a loan modification will be the better option. If a repayment plan is the way to go, the borrower may be able to start re- paying at the end of the forbearance timeline. Loan modifications may include adjusting the principal and interest (P&I) payments, extending the loan term to 30 years or beyond, and/or decreasing the interest rate. Servicers should explore these options with borrowers to determine what best meets their needs. » Track forbearance and post-forbearance plan details. With so many loans still in forbearance, servicers need an efficient way to track the specific terms/details of each borrower's forbearance and post-forbearance plans. Mortgage servicing software must be able to accommodate payment deferment and other loan modifications. Use leading- edge mortgage software that has extensive loss mitigation capabilities, including a forbearance/deferment window that allows servicers to track: 1. Forbearance plan details on the loan level » Terms: number of months, starting and ending dates » Borrower details (e.g., type of hard- ship, status of the forbearance plan) 2. Post-forbearance plans » Repayment plans (e.g., reduced payments) » Loan modifications (e.g., new term length, interest rate) » Deferment of interest Servicers can ease the forbearance process by communicating effectively with borrowers and helping them develop the right plans. By using mortgage servicing software to track forbearance and post-forbearance plan details, servicers can more efficiently handle the increased number of modifications. Versatile software allows borrowers and servicers to walk through the forbearance period with relative ease, remain up to date on the timeline, and have a more complete picture of the necessary steps to return the borrowers' mortgage to a current status. Anita Bush is VP of Mortgage Servicer Product Development for FICS (Financial Industry Computer Systems, Inc.), a leading mortgage software company specializing in flexible, cost-effec- tive, in-house mortgage loan origination, residential mortgage servicing, and commercial mortgage servicing software for mortgage lenders, housing agencies, banks, and credit unions. FICS' software solutions provide customers the flexibility to choose an in-house or cloud hosting solution. The company also provides innovative document management, API, and web-based capabilities in its full suite of products. Visit FICS.com for more information about our exceptional mortgage software solutions.