22
FITCH RATINGS
ON SERVICER
PERFORMANCE:
'IT SHOWED
RESILIENCE'
Bank servicers experienced a modest
decline of about 6% in active forbearance
agreements as a percentage of all loss mitigation
plans while nonbank servicers reported a
decline of about 10%—that's one takeaway
from the Q3 U.S. RMBS Servicer Metric
Report from Fitch Ratings, which tracks
servicer performance data.
e report also revealed that loan
modifications as a percentage of all loss
mitigation alternatives increased for both bank
and nonbank servicers from last quarter as some
initial forbearance relief periods expired, Fitch
reported this quarter, adding that borrowers
on a repayment plan continue to trend
downward as a percentage of all loss mitigation
alternatives, year over year.
Fitch's report also showed a continued
upward trend in hiring full-time employees
that emerged in the second-quarter report.
"Both bank and nonbank servicers have
been staffing up in response to an increase in
the volume of coronavirus-related relief requests
from borrowers. However, the trend was more
modest in the third quarter," the authors noted.
"e report provides transparency into a
variety of servicing industry trends in the bank
and nonbank sectors," Fitch researchers stated.
"It also allows users to view individual servicer
performance trends over the most recent four
quarters and compare those data metrics with
those of other servicers, revealing strengths and
weaknesses in servicer performance during this
critical time in the industry."
