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The Week Ahead: What Lies Ahead for Loss Mitigation

On Monday, December 5, the Urban Institute will present the virtual event, “What Is the Future of Loss Mitigation?” from 11:00 a.m.-1:00 p.m. Central.

Between the Great Recession and the pandemic, much has been learned about loss mitigation tools and how effective they are in helping homeowners, mortgage servicers, and the housing finance industry navigate major hardships and crises. When someone loses their home, it is often because something in their life has gone wrong, like unemployment, divorce, illness, or the death of a borrower or co-borrower. Through the pandemic, eight million households took advantage of forbearance plans, which allowed struggling borrowers to temporarily suspend their mortgage payments because of a hardship.

Recent data indicates that the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) likely prevented a large wave of foreclosures, aided by ultra-low mortgage rates. Many homeowners reduced monthly payments by refinancing to a lower rate; others struggling at the end of forbearance became eligible for loan modifications where the servicer reduced the rate, extended the loan term, reduced the interest-bearing principal, or provided a combination of these options.

But with mortgage interest rates rising over the last year to new 20-year highs over the 7% mark, new, long-term solutions should be explored to enable relief for homeowners who might struggle in the next downturn. Panelists in this virtual event will explore what the future of loss mitigation can look like and present options for policymakers on how to keep borrowers in their homes when they experience unforeseen hardships.

Opening remarks will be delivered by Janneke Ratcliffe, VP, Housing Finance Policy Center for the Urban Institute.

The “Loss Mitigation in a Rising Rate Environment” discussion will be led by Moderator Karan Kaul, Principal Research Associate, Housing Finance Policy Center, Urban Institute; and will feature speakers Michael Bright, CEO, Structured Finance Association; Kurt Johnson, Chief Risk and Compliance Officer, Mr. Cooper; Tom Land, VP Agency Relations-Government Servicing, JPMorgan Chase & Company; and Ted Tozer, Nonresident Fellow, Housing Finance Policy Center, Urban Institute.

The "Normalizing Forbearance” discussion will be led by Moderator Bonnie Sinnock, Capital Markets Editor, National Mortgage News, and feature a panel including Steven Bailey, Senior Managing Director and Chief Servicing Officer, PennyMac; Meg Burns, EVP, Housing Policy Council; Laurie Goodman, Institute Fellow, Housing Finance Policy Center, Urban Institute; and Brendan Kelleher, Associate Director, Loan Administration, Mortgage Bankers Association (MBA).

The third and final portion of the webinar will feature the session, “What Does This Mean for Consumers and Equity?” moderated by Bonnie Sinnock, and panelists Vanessa Gail Perry, Nonresident Fellow, Housing Finance Policy Center, Urban Institute, Professor, George Washington University School of Business; and Lisa Sitkin, Senior Staff Attorney, National Housing Law Project.

Click here for more information or to register for the Urban Institute’s webinar “What Is the Future of Loss Mitigation?”

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About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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