Since the CARES Act was signed into law, homeowners across the U.S. have taken advantage of its mortgage relief provisions. In fact, as of November 2020, a total of 6.5 million borrowers had been, or still were, on a COVID-19-related forbearance plan, either through the CARES Act or another program.
Fortunately, the forbearance programs and foreclosure moratoria have protected many Americans from losing their homes during the pandemic. Thanks in large part to these programs, the sort of housing market crisis of the 2008-2009 Great Recession has thus far been avoided.
At the onset of the COVID-19 crisis in the U.S., as servicers worked to quickly help borrowers in need of assistance, significant operational challenges began to emerge. Many of these challenges persist today, while new ones – like post-forbearance credit reporting, investor and year-end reporting for deferred balances – continue to arise. As we move into 2021 and the subsequent rolling 12-month expirations of forbearance plans throughout the year, new challenges will become even more pronounced.
The ability to quickly identify and address these operational challenges on an ongoing basis is crucial for servicers to maintain efficient and effective borrower assistance, while complying with the CARES Act and other government, state and local requirements.
Clearly, the faster that operational issues can be resolved, the less strain imposed on a servicer’s day-to-day processes as well. This is especially important since high volumes of borrower inquiries are expected to continue as borrowers forbearance periods end.
Looking back on the first few months of the crisis, one of the biggest challenges servicers faced was putting systems and processes in place to handle the massive influx of customer inquiries. But, like many other businesses, servicers were transitioning to a remote workforce, making it difficult to field these urgent borrower calls.
How the National Flood Insurance Program’s recent extension provides stability for the housing market
The NFIP provides stability for the housing market. As part of its Flood Services business, CoreLogic completes flood zone determinations for banks and mortgage companies to support their compliance with the mandatory purchase requirements.Presented by: CoreLogic