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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 40 March 2025 F E A T U R E S T O R Y their mortgage payments. In response, both federal and state governments are actively exploring creative solutions to help homeowners stay in their homes. These efforts include new regulatory updates and innovative policies aimed at providing more flexible and effective support for borrowers facing financial hardships. By the industry addressing these challenges head-on, the goal is to offer improved assistance, and to ensure that more families can maintain home- ownership during these trying times. Q: Insurance issues are hot right now. Can you share any insight on how this will impact loss mitigation programs? Hladik: Insurance issues are going to be a driver in payment difficulties for bor- rowers. With insurance rates on the rise due to numerous natural disasters, this is going to cause borrowers' payments to increase dramatically. Loss mitigation will be a valuable tool in assisting bor- rowers, but mortgage servicers do not have control over the extent of increases in taxes and insurance. Bond: Loss mitigation programs are currently at an all-time high, and with natural disasters driving insurance costs to unprecedented levels in some states, many borrowers are finding it increasingly difficult to keep up with their mortgage payments. In response, both federal and state governments are actively exploring creative solutions to help homeowners stay in their homes. These efforts include new regulatory updates and innovative policies aimed at providing more flexible and effective support for borrowers facing financial hardships. By the industry addressing these challenges head-on, the goal is to offer better assistance and ensure that more families can maintain their home- ownership during these trying times. Q: Regarding certain loss mit- igation programs winding down, what will the impact of these deadlines be on consumers? Hladik: These loss mitigation programs have been valuable in helping borrow- ers stay in their homes, and the absence of such relief is going to have a signifi- cant impact on borrowers. Q: Are there any upcoming regulatory changes or pol- icy shifts that could significantly impact the real estate market? Hladik: With daily change coming from Washington, D.C., there could be impacts on the market. It appears that regulation and enforcement will be de- creasing. Inflation and interest rates are going to be a key factor in impacting the real estate market, and policy changes in Washington may have an impact on increases in inflation. Q: With the most recent changes surrounding the CFPB, what are some pros and cons to a change in governance? Hladik: While enforcement or regula- tion may be declining for now, servicers would be wise to maintain regulatory compliance standards that they have been following. On the one hand, less enforcement actions by the CFPB may result in decreased costs in defending investigations and legal actions on the federal level, as well as smaller penal- ties. On the other hand, state attorneys general are sure to fill any perceived void, and that may be a more costly event for the mortgage community, as defense would now be on multiple fronts in multiple jurisdictions. Q: Moving forward, what is your personal forecast for Q4 of 2025? Hladik: While I am no economist or expert in the world of prognostication, I believe that significant increases in taxes and insurance are going to strain borrowers and lead to more defaults, resulting in a higher rate of foreclosures. With the current levels of debt in this "We aim to see each member firm join our committees, attend our events, submit articles for our publications, and fully enjoy the many benefits of being part of Legal League." —Jane Bond, Vice Chair, Legal League; Managing Partner, McCalla Raymer Leibert Pierce LLC