CFPB: Mortgage servicers’ pandemic response varies significantly
The Consumer Financial Protection Bureau published a report detailing the mortgage industry’s varied response to the pandemic.
Impact: The CFPB said it expects servicers to compare the report’s findings to their own internal metrics to identify opportunities for, and demonstrate concrete efforts toward, improvement.
Details: In the report, the CFPB said:
- Call metrics showed most servicers reported abandonment rates of less than 5 percent during the reporting period, though some were considerably higher.
- Many servicers saw increased delinquent exit rates in March and April 2021.
- Overall delinquency rates ranged from roughly 1 percent to 26 percent for federally backed and private loans.
- Nearly half of servicers said they did not collect or maintain information about borrowers’ English proficiency.
- Forbearance was widely available for borrowers with federally backed and private loans, and denial rates were consistently low for both loan types.
More: CFPB mortgage servicing regulations taking effect in August exempt institutions that meet the small servicer standard of 5,000 loans or less serviced annually, which includes most community banks.