Servicing Experts Talk Forbearance Practices

With so many changes to keep up with as a result of the COVID-19 pandemic, you don't want to be left behind. DS News recently hosted a complimentary webinar that addresses the best practices in forbearance agreements, including mortgage compliance and business strategy for all residential mortgage servicers, attorneys, interested government parties, and service providers supporting the industry.

Speakers for this presentation included:

• Moderator: David Wharton, Managing Editor, DS News & MReport
• John Dunnery, VP – Government Loan Servicing, Bayview Loan Servicing, LLC
• Deborah J. Grissom, Senior Director, Treliant, LLC
• Ellen Rose, Senior Director, Treliant, LLC
• Courtney Thompson, SVP Default Mortgage, Flagstar Bank
• Sharon Zuniga​, SVP, Default Operations, ServiceMac

Forbearance requests have begun to slow, according to data from Black Knight, but there is a risk of May-related forbearance activity changing that trajectory. As of April 30, more than 3.8 million homeowners are now in forbearance plans, representing 7.3% of all active mortgages, according to the latest data from Black Knight. Together, they account for $841 billion in unpaid principal and includes 6.1% of all GSE-backed loans and 10.5% of all FHA/VA loans.

Grissom noted that the optimistic view puts the total number of active forbearances at 4.5 million in June, and the pessimistic view at close to 9 million.

“Bottom line, there is a range of four to nine million loans that are going to need multiple operational touchpoints over the next 12 to 18 months,” said Grissom.

Speakers also discussed the importance of communications at this time, as many customers need to be educated on what forbearance is and isn’t, and when they should take advantage of it.

“There’s a lot of information out there,” said Zuniga. “Our job isn’t to tell the customer what to do, our job is to hear the customer, and assisting them with their questions about forbearances and the CARES act.”