DS News

DS News July 2021

DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.

Issue link: http://digital.dsnews.com/i/1388591

Contents of this Issue

Navigation

Page 77 of 99

76 e increase in forbearance activity continues to accelerate, with homeowners heading in all directions: exiting, extending, and, for some types of loans, entering forbearance for the first time. With this increased demand, servicers must have a plan in place to track and support customers. e key to creating successful exits and maximizing revenue is the use of new digital tools for real- time insights. e first wave of forbearance exits is well underway, with May marking the tenth week in a row of increased exit rates. e news has been largely positive as many homeowners remain on track with payments. Mike Frantantoni, SVP and Chief Economist of the MBA, recently noted that "homeowners who have exited forbearance and been able to take up their original payment again are performing at almost the same rate as the overall mortgage servicing portfolio." However, those homeowners who remain in forbearance are likely facing ongoing challenges such as lost jobs, reduced income, and other pandemic-related hurdles. Many may continue to fall further behind. Complicating these concerns are the expiration of extended unemployment benefits and the moratoria on foreclosures. As a result, when this next group hits their forbearance deadlines, they may struggle with loan repayments more than their predecessors. THE LOSS MITIGATION WATERFALL Servicers know that the key to creating a soft landing for these borrowers post- A TALE OF TWO EXITS With this increased demand, servicers must have a plan in place to track and support customers. The key to creating successful exits and maximizing revenue is the use of new digital tools for real-time insights. Quick Take By: Nadim Homsany

Articles in this issue

Archives of this issue

view archives of DS News - DS News July 2021