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64 Feature By: Susan Graham A change is coming, and mortgage servicers need to be ready for it. COVID-19-related forbearance will soon end for millions of homeowners. As it does, many borrowers will have questions about their repayment obligations. Borrowers who fail to meet these obligations may face a higher risk of foreclosure, something the Consumer Financial Protection Bureau doesn't want to see. Servicers need to communicate effectively to guide borrowers out of forbearance and back on track with their mortgage payments. Servicers must, for instance, contact borrowers 30 days before their forbearance period ends to discuss their repayment options. Missing this deadline is not an option. Federal regulators have made it abundantly clear that servicers are likely to be judged based on the outcomes their borrowers experience after forbearance. Helping borrowers understand their options is one key to preventing foreclosure and avoiding unnecessary scrutiny from federal regulators. Servicers can take several steps to improve communication and assist borrowers as forbearance ends. COMMUNICATE VIA MULTIPLE CHANNELS Given its mission to protect consumers, the CFPB has offered mortgage servicers resources and guidance on how it expects them to respond to consumers and their requests for information. CFPB has specifically emphasized the importance of communication and recommends that servicers use multiple methods to communicate with borrowers. e Bureau mentioned several techniques that servicers have used to reach homeowners, help them understand their options, and take appropriate action for their situation. ese techniques include: » Using self-service web-based tools and customer portals to assist homeowners in identifying available loan assistance options for their circumstances. Mortgage borrowers are not always eager to call their servicer, so using technology to make it easy for them to find the information they need on their own makes perfect sense. » Providing tailored communication to their mortgage borrowers that includes videos and emails explaining their options based on their loan type (e.g., FHA, VA, USDA, Fannie Mae, or Freddie Mac). » Providing information and educational resources in multiple languages to better assist consumers with Limited English Proficiency (LEP), thereby serving a broader range of homeowners. Even the best educational information will not help borrowers if it's written in a language they cannot understand. » Identifying borrowers' contact preferences in advance, allowing servicers to deliver information in a convenient, timely manner. PROVIDE EDUCATIONAL RESOURCES Helping borrowers get back on track post-forbearance and avoiding another foreclosure crisis are priorities for the federal government. CFPB, for its part, is willing to help by providing educational resources. Other agencies and the nation's largest investors are following suit. e Bureau has suggested that servicers refer consumers to the interagency housing portal, which explains how forbearance programs work and provides an overview of many of the options available. e site offers a number of helpful resources for borrowers and servicers, including information for consumers about forbearance repayment obligations, available in multiple languages. e complicated mortgage servicing process is difficult for many borrowers to 64 THE RIGHT TOOLS FOR THE RIGHT TIME Here's how improving borrower communication can help prevent foreclosure as forbearance ends.