Why Mortgage Services May Not Staff Due To Tolerance Results



Given that some of the suffering from the waning pandemic is likely to persist, and maintenance personnel are expected to turn their attention to expensive training and away from processing suspension of payments, there were questions about whether companies would need to budget for staffing.

However, a recent Fitch Ratings analysis of the servicing trends of residential mortgage-backed securities shows that companies are planning to use roughly the same number of securities so far. employees as they move from leniency to evaluating borrowers whose long-term earnings have declined.

According to the US RMBS Servicer Metric Report, published by the US RMBS Servicer Metric Report, the average number of full-time employees declined slightly in the first quarter to 2,949 from 3,004 in the previous quarter. For non-banks, there was only a slight increase to 1,006 from almost 928.

To meet the demand caused by the pandemic, the maintenance staff has increased the number of employees, and they are now working at full capacity. “They are going to transfer people where there is demand. So as abstinence agreements expire, you will probably start seeing these people returning to their original departments, ”said Rich Koch, Fitch’s director, in an interview.

Confirmation of this analysis is the decrease in the average number of loans issued by employees, equivalent to full-time employment. The figure fell to almost 563 from 850 for banks and 544 from 408 for non-custodians, Koch said, noting that this is likely a reflection of a decline in tolerance and companies’ interest in retaining some ability to handle exits.

“There is currently less abstinence activity and fewer phone calls coming in, in part due to the introduction of technology and improvements that have been made to facilitate the process of negotiating an abstinence agreement and requesting an extension,” Koch said.

Many service centers retrained people who were working to provide loss reduction results for people who were having trouble repaying loans and transferred them to a call center so they could be patient with increasing interruptions in payments. These employees will be able to return to their original departments to help with patient care, Koch said.

Some companies also have cross-trained employees by origin to reassess the income of borrowers for a possible revision of the terms of the loan. This activity builds on some of the same skills that were used in the original loan underwriting and may require the person concerned to be a licensed loan officer.


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