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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 32 August 2025 F E A T U R E S T O R Y PROACTIVE, NOT REACTIVE: ENGAGING BORROWERS EARLY TO PREVENT DELINQUENCY Industry leaders stress the need for trust, technology, and training to keep homeowners in their homes … and delinquencies out of the red zone. B y DAV I D W H A R T O N E conomic uncertainty, inflationary pressures, and escalating insurance and tax costs are pushing many homeowners to the financial brink, even as national delinquency numbers appear relatively steady. For mortgage servicers, preventing delinquency means acting before borrowers fall behind, and doing so with empathy, transparency, and technology that meets customers where they are. That was the central theme of a recent MortgagePoint webinar, "Proactive, Not Reactive: Engaging Borrowers Early to Pre- vent Delinquency," sponsored by Selene and featuring an expert panel including: • James Braxton, VP, Customer Resolu- tion, Servbank • JT Grubbs, EVP, Head of Servicing, Selene Finance • Michael Merritt, SVP, Customer Care & Mortgage Default, BOK Financial • Courtney Thompson, EVP, Mortgage Servicing, CMG Financial Here are five big takeaways from this exclusive conversation on the future of borrower engagement. 1. Economic Pressures Are Multiplying Inflation and higher costs for essentials like groceries, insurance, and property tax- es are reshaping the risk landscape, even for customers who appear stable on paper. "Consumer debt almost every day reaches a new all-time high," Michael Merritt said. "We're seeing stresses across the board from consumers, and in different ways. It's not just debt: housing materials are more expensive, and hous- ing repairs are more expensive. That's leading to higher taxes and insurance that are impacting customers in ways that we haven't seen before. … Customers today are dealing with different forces than we're used to seeing traditionally." Merritt says these pressures are par- ticularly acute for some FHA borrowers. While overall delinquency rates may look steady, Merritt warns, the numbers can hide "some icebergs" below the surface. Courtney Thompson added that uncertainty is fueling consumer anxiety. "There's a general consumer trust crisis. If you were lucky enough to buy a house in '17, '18, '19, you're looking at a very different monthly payment scenario than if you're trying to get into a house today." 2. Building Trust Is Non-Negotiable When a homeowner calls their servicer, the conversation isn't just about dollars; it's about trust. That level of trust often determines whether a home- owner reaches out for help or hides until it's too late. "Transparency ... is the biggest foun- dation when it comes to building trust," said James Braxton. "We have to start with empathy and precision." "No one takes out a mortgage [expecting] to fall behind. No one takes out a mortgage expecting to lose a job, lose a spouse," Merritt said. "The most successful call I ever had in my career ended in a deed-in-lieu," he continued. "I could never keep them in the house, but I got them in the best situation for them. You've got to be willing to stay focused, have those conversations earlier, and never forget that it's someone's home. There's nothing more valuable to them. Whether they're ready to have that conversation or not, it's our job to draw them out and get them into an effective conversation." " Thompson echoed that sentiment: "At the end of the day, this is a trust D A V I D W H A R T O N , Editor-in-Chief of MortgagePoint, has 20 years' experience in journalism, having worked for the Five Star Institute since 2017. Wharton has an extensive and diversified portfolio of freelance material, with published con- tributions in both online and print media publications. He can be reached at David. Wharton@thefivestar.com.