CFPB Announces Pandemic Challenges for Mortgage Institutions and Borrowers | Weiner Brodsky Kider PC

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CFPB recently published report according to mortgage service personnel, reflecting the challenges posed by the COVID-19 pandemic for both borrowers and service providers. The data in the report was collected from sixteen mortgage servicing companies, including large banks, non-banks, primary servicing, sub-servicing and sub-prime servicers, from December 2020 to April 2021.

With a few exceptions, the CFPB found that service companies did a good job of managing their operations to minimize the avoidable foreclosure risk for borrowers associated with the pandemic. For example, while the number of calls to the call center skyrocketed in March 2021 – likely as a result of the expiration of one-year grace periods for many borrowers – most call centers were able to process incoming calls without significant waiting times. As a result, most service centers had a low caller rate before they could contact a customer service agent and get mortgage assistance. In addition, among other things, the number of requests for admission to the group of persons in need of assistance in connection with COVID-19 remained stable during the reporting period; rejection rates were consistently low, ranging from 0 to about 500 per month for federally backed loans.

However, late COVID-19 accident abstention payments, when a borrower exited a pandemic abstinence plan (without a loss mitigation plan on exit) and had a mortgage payment due and at least partially unpaid, increased significantly during the reporting period. period. … Given the myriad loss mitigation options currently offered by service companies to help borrowers struggling with the pandemic, the CFPB said it expects to see fewer borrowers in this category. In addition, the CFPB noted that nearly half of the service companies did not collect or maintain information on the limited English proficiency (LEP) of borrowers, and a quarter of the service companies did not collect or maintain data on the race of borrowers.

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