Mortgage service is back in the spotlight in a way we haven’t seen since the post-financial crisis era. Many service officers who went through the ramifications of the housing crisis were educated in school of hard knocks, but ended up obtaining important managerial positions because of their performance during this time. And many women working in mortgage services have turned this experience into new opportunities. In fact, it was around this time that I moved my created automated workflow technology to an international law firm and started my business helping mortgage agents streamline mitigation. losses as foreclosures increased.
This time it’s not as dire as the financial crisis, but the results are certainly severe enough to set up a difficult set of circumstances for next year. Over one million borrowers remain on forbearance plans, the number of natural disasters affecting communities nationwide is increasing, and regulators are paying more attention to how service providers do business in the future.
Given these complexities, next year could be quite difficult. The good news is that this current situation offers many opportunities for repairers to streamline operations and find new ways to give customers the help they need. Likewise, the opportunity will again present itself for women to become leaders and bring new perspectives and ideas to the mortgage services industry.
Maintenance will become more complex
The primary focus of every repairman should be to scale their business to handle expiring forbearance plans and foreclosure foreclosure protections, which will be a focal point of the industry in the New Year. It will not be an easy task.
As of this writing, the most recent Mortgage Bankers Association forbearance and call volume survey found that more than 1.1 million loans remained on forbearance plans, including 15.3 million. % of loans in the initial stages of forbearance and 74.8% in extensions. Looking at the total forborne outflows since last June, 16.7% of borrowers have exited without a loss mitigation plan, 13% have undergone loan modifications, and 7.1% have paid off their loans by refinancing or selling their home. Other loans resulted in loan deferrals or borrowers continuing to make payments.
These disparities mean that service providers must consider a wide range of options when working with borrowers coming out of forbearance. This means reducing compliance risks by implementing required workflows, managing and tracking all customer interactions, providing proactive responses to customers, and being able to access the full training history of every customer under the CARES Act. In other words, departments that work with borrowers on forbearances, extensions, deferrals, or foreclosures require a transparent service process, ensuring there is zero gap between the process of moving from forbearance to a change in loan. loan or any other option.