CFPB: Small Servicers Have Fewer Delinquencies
The Consumer Financial Protection Bureau said community banks and other smaller mortgage servicers play an outsize role in rural areas, experienced lower delinquencies during the financial crisis, and are less likely to service loans sold to Fannie Mae or Freddie Mac.
According to the bureau, 74 percent of borrowers with mortgages at small servicers said having a branch or office nearby was important in how they chose their mortgage lender, compared with 44 percent of those with large servicers. It also found that while delinquency rates on loans at servicers of all sizes increased in 2008 amid the crisis, peak rates were much lower for small servicers
Read CFPB Report