CFPB evaluates the effectiveness of mortgage services

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The mortgage world is gearing up for an unprecedented era of amazing operating rooms challenges In the aftermath of the COVID-19 pandemic, the Bureau of Consumer Financial Protection has consistently recommended that companies adopt effective practices to meet borrower needs related to curtailing tolerance programs and other government efforts to reduce losses. The bureau has now released its first report that assesses industry performance. Looking at 16 major mortgage servicing firms, the CFPB concludes that responses to the pandemic have “varied significantly,” and indicates that now is the time to identify and correct the gaps.

CFPB Acting Director Dave Waggio invites service companies to compare CFPB data against their internal metrics and demonstrate “concrete improvement efforts” in the areas needed. And he warns everyone who doesn’t.

“Many of the mortgage safety protections in emergencies are dwindling, and service personnel have had ample time to prepare for the millions of distressed homeowners who need their help,” Uejio said. “Today’s report should provide information for service companies’ own data reviews as they determine whether they are doing enough for borrowers. Service personnel in the worst position must immediately take corrective action. The CFPB will hold accountable those who harm homeowners and families. ”

CFPB researchers mapped metrics such as call handling and loan delinquency rates, finding, for example, that while many service companies were able to handle large numbers of calls with an average hold time of less than three minutes, others reported that callers waited up to 26 minutes.

Key metrics used in the CFPB report include these call metrics, including average response rate and interruption rate; exit indicators from the Pandemic Abstinence program to determine support for homeowners exiting such programs; delinquency rates to identify differences between service organizations; Participation in the COVID Borrower Assistance Program; and borrower profile metrics to better understand needs such as language assistance. According to the CFPB, “almost half of the service providers in the report clearly indicated that they did not collect or store information about the LEP status of borrowers, which could result in borrowers not receiving the language assistance they need. Some of the service providers also reported that they do not store data on borrowers’ race, which could increase the risk of fair lending violations. It also prevented the CFPB from assessing the impact of CARES Residential Mortgage Termination Act provisions on specific racial groups.

Finally, the bureau, noting that it looks forward to further research on unnamed companies in the report, called on service centers to “strengthen their communications and outreach efforts to educate and assist all borrowers in dealing with delinquencies and accessing widely available assistance and assistance.” … options for reducing losses “.

The study authors added: “The CFPB also encourages service providers to ensure that their compliance management systems include robust measures to identify and mitigate fair credit risk.”

The full report is available on the website files.consumerfinance.gov



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