May 2021

first_img Servicers Navigate the Post-Pandemic World 2 days ago January 29, 2016 3,553 Views in Daily Dose, Featured, Foreclosure, News MERS Emerges Triumphant Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / MERS Emerges Triumphant Tagged with: Foreclosure MERS MERSCORP Holdings Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Sign up for DS News Daily center_img About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago The legal right of Mortgage Electronic Registration Systems (MERS) to act as mortgagee has been repeatedly challenged in the last few years, and MERS has repeatedly emerged victorious in court.The latest court decision in favor of MERS came this week from the New Hampshire State Supreme Court, which upheld a July 2015 decision that the language in a mortgage granted to MERS as the mortgagee as nominee for the lender and the lenders successors, and assigns evidences an agency relationship between the note holder and the assignee of a MERS mortgage, according to an announcement from MERSCORP Holdings, Inc.The borrower in the case of Castagnaro v. Bank of New York Mellon filed a wrongful foreclosure action, claiming that BNY Mellon lacked the authority to foreclosure non-judicially under New Hampshire state law without also proving that it was the holder of the borrower’s note. The trial court ruled in favor of BNY Mellon and the plaintiff appealed the case to the First Circuit court, which subsequently certified two questions to the New Hampshire State Supreme Court with regard to whether or not the state law requires that the party initiating the foreclosure must be the owner of both the note and the mortgage at the time the non-judicial foreclosure is brought about.The Supreme Court referred the First Circuit Court to its opinion in Bergeron v. N.Y. Community Bank, issued in July 2015, which involved answering similar questions on the law pertaining to foreclosure. Both cases involved mortgages creating an agency relationship between MERS and the noteholder and granted expressly to MERS (or whomever MERS assigns) “the power of sale and the right to foreclose and sell the mortgaged property,” according to the announcement.“We are pleased that the Supreme Court of New Hampshire consistently recognizes the plain language in the mortgage agreement signed by a borrower at closing establishes the lawful agency relationship between MERS and a lender and its successors,” MERSCORP Holdings Vice President for Corporate Communications Janis Smith said. “The New Hampshire Supreme Court ruling recognizes MERS’ authority to take action on behalf of the lender, including assigning the mortgage.”MERS won a number of court decisions just since the second half of 2015 in cases that challenged its right to act as mortgagee. In late September, MERS won similar decisions in Montana, Georgia, New York, and Texas. In Kentucky in early September 2015, the U.S. Sixth Circuit Court of Appeals denied an en banc rehearing of a case that held that recording statutes in the state do not required a recording in the land records when promissory notes are transferred. MERS has also had court victories in North Texas, Tennessee, and Pennsylvania since July. Related Articles Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Foreclosure MERS MERSCORP Holdings 2016-01-29 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: GDP Growth Stalls; What’s Next? Next: Will Buy-to-Rent Strategy Continue Gaining Momentum in SFR Space? Subscribelast_img read more

first_img The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Phil Banker February 7, 2017 1,357 Views Sign up for DS News Daily Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Office of the Comptroller of the Currency recently released a list of Community Reinvestment Act (CRA) performance evaluations that became public last month. Of the 20 bank evaluations made public, two of them were rated “outstanding” while the other 18 were rated “satisfactory.”The list includes evaluations that became public during the month of January 2017 and includes national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings, according to the OCC.The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.HSBC Trust Company and United Community Bank of Lawrenceburg, Indiana were rated as “outstanding.” None of the entities received ratings of “needs to improve” or “substantial noncompliance.”The Community Reinvestment Act designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. The Act prohibits the denying or increasing the cost of banking to residents of racially defined neighborhoods, better known as redlining, according to the OCC’s website.The Act instructs the appropriate federal financial supervisory agencies to encourage regulated financial institutions to help meet the credit needs of the local communities in which they are chartered, consistent with safe and sound operation. To enforce the statute, federal regulatory agencies examine banking institutions for CRA compliance, and take this information into consideration when approving applications for new bank branches or for mergers or acquisitions.For a list of all of the entities whose ratings were made public this month, click here. A searchable list of all public CRA evaluations can be accessed through the OCC’s website by clicking here. Phil Banker began his career in journalism after graduating from the University of North Texas. He has covered a number of communities across Texas and southern Oklahoma, writing news and sports for publications including the Ardmoreite, Ennis Daily News and the Plano Star-Courier. He is currently a contributor to DS News and The MReport. in Daily Dose, Featured, Headlines, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago OCC Releases CRA Evaluations for 20 Financial Institutions  Print This Post Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / OCC Releases CRA Evaluations for 20 Financial Institutions Previous: Fed’s MBS Drawdown Could Affect Housing Market Next: LenderLive Hires VP of National Sales Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago 2017-02-07 Phil Banker Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Headlines Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected]  Print This Post 2017-10-25 Nicole Casperson Recognizing Challenges and Taking Action October 25, 2017 1,319 Views Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Previous: David Stevens Announces Retirement After 6 Years Helming the MBA Next: Trustees Triumph About Author: Nicole Casperson Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save DS News talks with Robert Klein, Founder and Chairman of Safeguard Properties and SecureView to discuss some of the challenges the industry is facing recovering from the recent hurricanes, along with a solution moving forward. What’s the first thing the industry needs to do in order to be more prepared for natural disasters in the future? What can housing professionals learn from this? See the exclusive interview here. Home / Daily Dose / Recognizing Challenges and Taking Action The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

first_img 20-year fixed mortgage rate Economy Fannie Mae Fed GDP HOUSING mortgage Rates Sales 2018-02-16 Radhika Ojha Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News Demand Propels Home Prices Upward 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Domestic Spending to Spur Economic Growth Related Articlescenter_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Domestic Spending to Spur Economic Growth Subscribe Tagged with: 20-year fixed mortgage rate Economy Fannie Mae Fed GDP HOUSING mortgage Rates Sales February 16, 2018 1,800 Views Servicers Navigate the Post-Pandemic World 2 days ago Previous: Starter Home Values Rising at the Fastest Rate on the Market Next: For Sale: Freddie Mac’s First NPLs of 2018 Mortgage rates and home sales are expected to rise in 2018 according to the latest economic and housing outlook by Fannie Mae. The report expects mortgage rates to rise 30 basis points to 4.4 percent by the end of 2018 as a result of the unexpected spike in long-term interest rates at the start of the year.The report, which gives a snapshot of what can be expected from the economy during the year, indicated that robust economic growth would continue into 2018 despite the recent market volatility and expects the U.S. economy to post a strong 2.7 percent GDP growth during the year. “Strength in economic fundamentals continues to underpin the current forecast, including recent momentum in domestic demand and a historically healthy labor market,” the report predicted.The report indicated that the passage of deficit-financed stimulus in this year’s budget was likely to raise additional overheating concerns. The report forecasts the first rate hike of the year in March during the Fed meeting under the new leadership of Fed Chair Jerome Powell.According to the report, after seeing a surge in spending in the last quarter of 2017, spending growth could moderate in the coming quarters but would remain the primary driver for the country’s economic growth, in part due to increased disposable income from the tax cut. In fact, the stronger disposable household income growth due to the tax cut and strong growth in jobs is also expected to translate into rising new home sales during the year.“We upped this year’s 30-year fixed mortgage rate forecast by 30 basis points …” said Doug Duncan, Chief Economist at Fannie Mae. “However we don’t expect rates to play much of a role in total home sales, especially with anticipated stronger disposable household income growth.”During the year, the forecast expects median home prices to rise from $246,000 in 2017 to $259,000. Median prices of new homes are also expected to increase from $320,000 to $337,000.“The ongoing inventory shortages should continue to constrain sales despite otherwise ripe home buying conditions,” Duncan said. The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

first_imgHome / Daily Dose / Spotlight on REO and Servicing Trends The Best Markets For Residential Property Investors 2 days ago Tagged with: Five Star Conference HOUSING Property Management REO Servicing Subscribe Demand Propels Home Prices Upward 2 days ago Previous: Discussing the Default Landscape Next: Keys for Life Concert Celebrates Industry, Vets Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Spotlight on REO and Servicing Trends The Best Markets For Residential Property Investors 2 days ago Five Star Conference HOUSING Property Management REO Servicing 2019-09-24 Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Sign up for DS News Daily Share Save Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Education and knowledge-sharing were at the center of proceedings during the second day of the ongoing Five Star Conference and Expo in Dallas. The Property Preservation Lab, Servicing & Compliance Lab, and the REO Lab all provided attendees with keen insights into the latest trends in default servicing and asset management.Hosted by Guardian Asset Management and Co-Hosted by Apex Asset Management Group, Brookstone Management, Five Brothers, Laudan Properties, and MSI, the Property Management Lab began with opening remarks from the Lab Director, Hoss Gabbard, Managing Director, Default Operations/Post Sale, Home Point Financial Corporation.Topics such as strengthening vendor relations, preserving assets in high-risk areas, and honing request for proposal (RFP)-writing skills were at the heart of the discussion during the Property Preservation Lab in the morning. “There’s a misconception that Fannie Mae knows that they’re looking for,” Rebecca Thibaudeau, Category Manager, Corporate Procurement, Fannie Mae noted regarding writing RFPs. “We want to find out what’s out there.”The afternoon saw two key areas of the default servicing business being discussed by experts. At the Servicing & Compliance Lab led by Michael S. Waldron, Chief Compliance Officer, Bayview Loan Servicing, experts discussed strategies to enhance operations, manage costs, and assist homeowners.Hosted by Altisource and Co-Hosted by BRON, Situs AMC, Consolidated Analytics, Ernst & Young, and National General Lender Services, the discussions at the Servicing & Compliance Lab revolved around the present and future of servicing, expectations from new housing policies, and technological innovations in servicing operations.At the REO Lab hosted by Home Depot Renovation Services and Co-Hosted by Altisource, Constructive Management, and Five Brothers Asset Management, Lab Director Andrew Oliverson, VP, REO Operations, Green River Capital, led discussions on the challenges of REO disposition.”The challenge that agents have had in the past and may still have is staying relevant as auctions become bigger,” Oliverson said. “You’ve got to continue to be that local expert. Its important for agents to be engaged and know their local market.”The lab deep-dived into critical topics facing the REO business. They included insights on working with government agencies, the future of asset management, how technology’s shaping the REO business, and advances in alternative disposition strategies.”Make yourself a resource,” commented Rida Sharaf, SVP of Operations, USRES.The education sessions will continue on Wednesday with expert insights and keynotes during the Diversity & Inclusion Lab, Foreclosure Lab, and Fintech Lab. About Author: Radhika Ojha Governmental Measures Target Expanded Access to Affordable Housing 2 days ago September 24, 2019 1,718 Views in Daily Dose, Featured, News, REO, Servicing last_img read more

first_img Related Articles The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Financial Services Committee Chair Denounces Volcker Rule Changes Previous: Housing Market Could Stave Off Potential Recession Next: President Trump on Opportunity Zones: ‘It’s All Working’ The Federal Reserve has announced that it will be making changes to the Volcker Rule, and the Fed along with the Commodity Futures Trading Commission. Changes proposed include simplifying and clarifying the operation and compliance requirements of the rule, permitting banking entities to engage in additional fund-related activities, as well as improving and clarifying the treatment of foreign funds.In a statement, Congresswoman Maxine Waters, Chairwoman of the House Financial Services Committee, denounced the changes, stating that regulators are “working overtime to weaken a regulation that he fought tirelessly for by allowing banks to gamble with taxpayer money.”“The Volcker Rule is a cornerstone of Wall Street reform that Congress passed in the wake of the 2008 financial crisis to prevent federally-insured, deposit-taking banks from engaging in risky, speculative activities, on the backs of the American taxpayers, said Congresswoman Waters. “In August, regulators senselessly weakened the proprietary trading section of this critical rule. Today, they are proposing to allow banks to invest in the same risky assets that contributed heavily to the financial crisis and to become more entangled in private equity and hedge funds. At a time when prudential regulators should be working to uphold consumer protections, we continue to see a series of deregulatory actions by Trump appointees that benefit Wall Street at the expense of Main Street.”Waters goes on to call on the regulators to “reconsider this and every other senseless attack on the Volcker Rule.”The Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission is currently seeking public comment on the changes proposed to the regulations implementing section 13 of the Bank Holding Company Act (BHC Act).“I am encouraged that the agencies have proposed a rule to improve, streamline, and clarify the ‘covered funds’ portion of the Volcker Rule,” said Sen. Mike Crapo, Chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs. “These changes are necessary to improve market liquidity and preserve access to diverse sources of capital for businesses.”“As I have said before, the intent behind the Volcker rule is the right one—banks should not use deposits that are insured by taxpayers to make risky proprietary trades or investments in hedge funds and private equity funds,” said Federal Reserve Chair Jerome H. Powell. “We now have considerable supervisory experience putting that common sense prohibition into practice, and we have learned that a simpler, clearer approach to implementing the rule makes it easier for both banks and regulators to carry out the intent of the rule. We have already taken several steps in that direction and the proposal before us continues that work.” Financial Services Committee Chair Denounces Volcker Rule Changes Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. February 4, 2020 2,247 Views center_img in Daily Dose, Featured, Government, News Financial Services Committee Volcker Rule Waters 2020-02-04 Seth Welborn Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe  Print This Post About Author: Seth Welborn Tagged with: Financial Services Committee Volcker Rule Waters The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

first_img Previous: Single-Family Rental Yields Drop in 2020 Next: Regulators Responding to Coronavirus Spread About Author: Mike Albanese Vote on COVID-19 Support Bill Delayed Sign up for DS News Daily March 12, 2020 1,620 Views Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post in Daily Dose, Featured, Government, News Bill Coronavirus Government 2020-03-12 Mike Albanese Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Tagged with: Bill Coronavirus Government The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Work on the Democrat-proposed Families First Coronavirus Response Act continued Thursday afternoon as Democrat and Republican lawmakers attempted to reach a compromise.  Politico reports that Speaker of the House Nancy Pelosi and Treasury Secretary Steven Mnuchin are working to reach a deal before Congress goes into a week-long recess. Senate Majority Leader Mitch McConnell (R-Kentucky), however, called the proposal an “ideological wish list.” McConnell also said Thursday that the Senate could cancel a planned recess and stay in session. ____Original story appears below.House Democrats Wednesday evening introduced a multi-billion-dollar bill in response to the COVID-19 outbreak that includes emergency provisions with paid sick leave, free testing, food aid, and unemployment insurance, according to Politico. The report states the House is expected to vote on the measure Thursday afternoon. Republicans and the White House are aware of the provisions in the bill, but Politico states they have not announced their position on the legislation. “The Families First Coronavirus Response Act is focused directly on providing support for America’s families, who must be our first priority in this emergency,” said Speaker of the House Nancy Pelosi in a statement. “We cannot fight coronavirus effectively unless everyone in our country who needs to be tested knows they can get their test free of charge.  We cannot slow the coronavirus outbreak when workers are stuck with the terrible choice between staying home to avoid spreading illness and the paycheck their family can’t afford to lose.”Rep. Bobby Scott (D-Virginia) said on Twitter Thursday morning that the Families First Coronavirus Response Act provides people with health coverage, food assistance, and financial support they need to cope with “widespread consequences” of COVID-19. “This bill reflects our responsibility to stand with the American people as we confront this crisis,” Scott said on social media. Politico added that the proposal came after President Donald Trump’s Oval Office Address Wednesday evening. The President announced several emergency measures, including a 30-day ban on foreign nationals entering the U.S. from many European countries. During his address, Trump called for a payroll tax to millions to help alleviate the economic issues the virus has caused. “Alarmingly, the president did not say how the administration will address the lack of coronavirus testing kits throughout the United States,” Pelosi and Senate Minority Leader Chuck Schumer (D-N.Y.) said in a joint statement late Wednesday.”Smart action today will prevent the spread of the virus tomorrow,” the President stated during his address. Insurance companies will also be waiving copayments on coronavirus treatments and extend payments for these treatments. President Trump also announced his plan for workers who will need to be staying home.”I will soon be taking emergency action, which is unprecedented, to provide financial relief,” President Trump said. “This will be targeted at workers who are ill, quarantined, or caring for others due to coronavirus.”President Trump is also instructing the small business administration to provide capital liquidity to affected firms, and he stated he will be asking Congress to increase funding for this program by an additional $50 billion.During an address at the Oval Office, President Trump said he does not support the proposed House bill because it has items that have “nothing to do” with the disease.FHFA Director Dr. Mark Calabria in a statement, “To meet the needs of borrowers who may be impacted by the coronavirus, last week Fannie Mae and Freddie Mac reminded mortgage servicers that hardship forbearance is an option for borrowers who are unable to make their monthly mortgage payment. For borrowers that may be experiencing a hardship, I encourage you to reach out to your servicer. The Enterprises and the Federal Home Loan Banks continue to provide support to the secondary mortgage market, and the UMBS market continues to operate at its normal level.”Congresswoman Maxine Waters, Chairwoman of the House Financial Services Committee, sent letters to Administration officials, regulators, and credit reporting agencies expressing concerns about risks related to COVID-19 and the steps they are taking to prevent Americans and the financial system from being harmed.“While our federal regulators, agencies, and financial institutions must take action to protect consumers and our economy, I must emphasize that it is unacceptable to use this crisis as an excuse to justify rollbacks of important financial regulations that are in place to protect our financial system and economy,” Congresswoman Waters wrote in her letter. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Vote on COVID-19 Support Bill Delayed Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Subscribelast_img read more

first_imgHome / Daily Dose / Rising Tides of Economic Hardship COVID-19 is causing more financial hardship for many homeowners than the Great Recession, according to mortgage and servicing experts. The April unemployment rate hit 14.7%, the highest figure since the 1930s, during the depths of the Great Depression. Even after that figure was reported, U.S. Treasury Secretary Steve Mnuchin said in an interview that the figure could get worse before it gets better, and that the actual unemployment rate—factoring in people who have quit looking for work and the underemployed—could be as high as 25%.In addition, more than 3.5 million mortgage borrowers had asked for forbearance as of late April, according to the Mortgage Bankers Association. The volume of borrowers seeking forbearance or other financial assistance far surpasses the demands of the Great Recession. A recent DS News webinar entitled “Forbearance Agreements: Impact and Best Practices,” sponsored by Treliant, explored all aspects of recently implemented forbearance plans from a mortgage servicer perspective, including processes, meeting regulatory requirements without challenges, and preparing for the upcoming modification wave at the end of the period. With that event as a launching-off point, DS News now brings you an expended look at this topic, featuring insights from companies such as Bayview Loan Servicing, BSI Financial Services, Flagstar Bank, RoundPoint Mortgage Servicing, ServiceMac, and more.“Customers are mostly seeking payment relief, which was available from the start with a forbearance plan,” said David Hughes, SVP of Contact Center for RoundPoint Mortgage Servicing Corporation, one of the nation’s largest, fully integrated nonbank mortgage servicing companies. “Many customers would like to see a deferral program where their mortgage term is extended by the number of months they are unable to pay. The GSEs were already in the process of developing a deferral program when the pandemic hit and are now working to fit the needs of those impacted by COVID-19.”However, Hughes added that the program won’t work quite as some customers have sought, as the forborne payments won’t result in an extension of the remaining term, but rather a non-interest-bearing balance due when the loan pays in full.“This could in the future introduce a hardship to customers intending to pay off their mortgage on an amortized schedule,” Hughes added.COMPLIANCE CONCERNSA record number of borrowers are requesting forbearance or modifications on their mortgages, presenting numerous challenges for the mortgage servicing industry when it comes to compliance, operations, and finances.Servicers need to proactively notify and educate borrowers of any compliance or modification options and offers made, as well as any offers accepted, ongoing communications as incidents evolve, and any temporary, subsequent, and final resolutions— record-keeping that can be cumbersome at the best of times. With the surge in volume, it’s even more critical to have automation in place, said Jane Mason, CEO of Clarifire.While physical letters have been essential documentation for years, the sheer volume of communications means that servicers need to be open to other forms of communication, said John Dunnery, Bayview Loan Servicing’s VP of Government Loan Servicing.“The GSEs and HUD have mentioned other means of communication than by phone or letter—that’s a first,” Dunnery said. “They’re trying to push out there the need to contact customers in the way they normally get contacted, which is not through the phone anymore and not with the letter that normally gets trashed even before it’s opened. So, the opportunity for us to develop other ways of communication and how to leverage that communication in order to get out the message to customers is something new and hopefully something that most services have learned since the 2008 crisis—how to leverage that and implement that in their systems.”Even servicers who have been much more conservative with their communication practices have had to shift to “meet consumers with where they are at in 2020,” using electronic communications when necessary, said Courtney Thompson, SVP, Default Mortgage Servicing, for Flagstar Bank. “There are many layers of risk infrastructure that we have to get through to get some of those [electronic] mechanisms approved and to control it appropriately.”So, while technology helps cast a wide net for initial communications, follow-up call campaigns can provide consumers with more specific help, Thompson said.Technology also helps because the jump in volume means that not all callers can get through in a timely manner. The call volumes, along with the rate of call abandonment (the consumer hanging up, often due to long wait times) has increased significantly in the industry during the pandemic, although ServiceMac said they have not experienced these issues impacting their customers.“We increased staffing and have strong vendor support to ensure our service levels remain above the industry standard of 80% or more of the calls answered in 30 seconds or less and our abandonment rate remains below 2%,” said Sharon Zuniga, SVP, Default Operations, ServiceMac. Another compliance concern is agents who go off script on calls or in a text, Zuniga said.Electronic communications can provide customers with some information so that they do not have to wait on the phone or keep calling back. However, regulators are closely monitoring forbearance and related Information provided through websites and IVR recordings, Zuniga cautioned. “It’s important that you monitor your websites to ensure the accuracy of the content as this is a source of risk concern going forward in our industry,” she added.Dunnery said that Bayview helps ensure compliance by recording each call, then searching for specific keywords. The quality assurance team reviews the calls with the COVID-19-related keywords to ensure consistency, which is the hardest part of the messaging.“Agents normally will stick to a story, but that story can vary, depending on the type of call, the type of borrower on the call, and the questions that are coming. Trying to maintain consistency has been difficult,” Dunnery explained. “We use daily feedback from the quality control calls for our team huddles to ensure that the message is consistent.”Even with the shift to digital communications for many customer interactions and the ongoing importance of phone calls, physical letters are still essential elements of documenting changes in customer payment obligations.“We do a significant amount of quality control on the letters that go out to the customer,” Dunnery said. “At last count, we were up to eight letters that could be mailed to the customer on top of all other letters they would get as they rolled delinquent, part of the normal delinquency servicing.”Dunnery admitted that this can occasionally lead to confusion for customers, as some letters are a result of COVID-19 responses and others are more typical delinquency/forbearance letters.“We are documenting each of the changes we are making to policies and procedures that are necessary to implement the responses that we are putting forward so that we create a paper trail for later,” Dunnery said.Based on what happened during the Great Recession, regulators will likely be examining closely any changes to policies and procedures, Dunnery added.“We want to make sure that the paper trail is adequate and maybe over communicated so that there are no issues in the future.”A BOON FOR SUBSERVICINGWhile the pandemic and subsequent job losses are hitting mortgagees, mortgage holders, and servicers hard, it has meant a booming business for subservicers, said Bob Caruso, President and CEO of ServiceMac. He told DS News that business had grown 10% since the pandemic first hit, with some servicers straining to handle the surge in volume brought by current demand.“We want to make sure that customers who are asking for forbearance or for modification don’t have any service-level issues,” Caruso said. So the interactive voice response (IVR) tree is simplified, asking customers to choose from only two options so that they can quickly advance to pandemic- or non-pandemic-related servicing.Self-service can be helpful, but only to a point, according to Caruso, so SeviceMac directs callers to live agents to help make the payment/ resolution decision that is best for them.“We want to make sure that the customer fully understands the different options,” Caruso explained. “We want to make sure that they know what forbearance looks like.”THE STAFFING TWO-STEPHowever, the business boom, combined with the social distancing measures that most companies are following, provides a challenge for companies looking to hire additional staff, Caruso said.He said that ServiceMac uses LinkedIn and other resources to advertise for openings. In the past, applicants would be interviewed in one of the company’s offices, enabling executives to see nonverbal cues as well as verbal responses to questions. It’s not the same with a video interview, Caruso said. “It’s very different hiring people who you have never physically met.”Some industry companies have approached staffing issues by moving to an “all-hands-on-deck” philosophy for managing the onslaught of communications demanded by the COVID-19 pandemic.In addition to the sheer volume of calls, the call handling time for calls has doubled from about six minutes to nearly 13 minutes as consumers—many who had never been in a forbearance situation before—seek information on payment options, Thompson said.“There was a real cathartic exercise that needed to occur with the consumer on the phone,” she explained.Flagstar redeployed members from its Bankruptcy and Disclosure teams who had contact center training, as well as implementing special training to handle forbearance calls.“It was an exciting and challenging group effort to make sure that we gave consumers as much access to us as humanly possible,” Thompson said.KEEPING IN TOUCH“One of the immediate challenges facing our customers is misinformation,” Hughes told DS News. “Some customers obtain an understanding of possible relief options that don’t exist and are understandably upset with the options that do exist.”Hughes added, “At the outset of the crisis, RoundPoint developed and posted on our COVID-19 landing page, an online tool allowing impacted customers to quickly and easily set up a forbearance plan themselves. The online experience is detailed in explaining how the program works, the options that currently exist to address the forborne payments when the plan term ends, and the reality that other programs may become available in the interim. Our customer service associates have been trained to help our customers understand the same information. Both the online and the on-phone experience ends with an assurance that we will touch base with them regularly throughout the forbearance plan to check in on them and to provide any updates we may have.”ServiceMac’s Zuniga recommended using websites to provide information, particularly considering the volume of communication. However, even the best website information can leave the customer confused because there are several different options, and each borrower’s situation is different.“We still feel one of the best ways is to talk with our customer and educate them on what a forbearance is and what it isn’t,” Zuniga said. “There’s a lot of information out there. Our job isn’t to tell the customer what to do, but to listen to the customer about what they are going through, assisting them, helping them with their questions about the forbearance or the CARES Act and then helping them make what is the best decision for them.”ServiceMac also shifted part of its call monitoring team to focus on forbearance-related calls to adjust scripting in order to better aid borrowers.THE ROAD AHEADThe COVID-19 pandemic’s effects on the economy, the American homeowner, and the mortgage servicing industry are likely to be studied and reexamined for several years after the crisis passes.“We’re trying to understand where things will stand post-COVID,” said Allen Price, SVP at BSI Financial Services. “Some borrowers will get their jobs back; others will go back at reduced hours.”Still others will find themselves looking for new jobs, or on extended unemployment. With so many unknowns regarding the pandemic, the economy, and the job market playing out over the next several months, Price said BSI is closely monitoring its portfolio for forbearances, defaults, and delinquencies.Caruso also observed that many financial institutions jettisoned their servicing businesses following the last economic downturn. Will that trend reoccur? Only time will tell.In the meantime, servicers and subservicers need to follow best practices now in compliance, communication, and operations to ensure that they minimize any impact to their businesses until payments and defaults return to more normal levels.Mason speculates that it will take at least a year to stabilize the market. Regulators will carefully review what servicers and subservicers did during the height of the crisis, so it will be critical to have the right documentation for the right deferral plans.Though there are some similarities to the sharp rise in delinquencies during the Great Recession, there are also enough differences that it’s hard to have a handle on how things will look post-pandemic, Price said.Caruso added that, since there are so many unknowns, the GSEs should consider allowing borrowers to have multiple modifications. That would help those who could get jobs back as the economy reopens but could be out of work again if the pandemic gets worse, leading to future shutdowns. June 23, 2020 1,832 Views Demand Propels Home Prices Upward 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Phil Britt started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. Share Save in Daily Dose, Featured, Foreclosure, Journal, Loss Mitigation, Magazine, News, Print Features, Servicingcenter_img cover story COVID-19 mortgage servicing social distancing 2020-06-23 David Wharton Related Articles Subscribe Tagged with: cover story COVID-19 mortgage servicing social distancing Servicers Navigate the Post-Pandemic World 2 days ago About Author: Phil Britt Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Rising Tides of Economic Hardship Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: COVID-19’s Impact on Home Values Next: Foreclosures Down for Fannie Mae, Freddie Mac Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

first_img Twitter Previous articleNo injuries after shots are fired in Fanad DriveNext articleCraig Breen to miss Joule Donegal International Rally admin Pinterest Twitter Homepage BannerNews Parents can register their children under 6 for free GP care from today.60 per cent of the country’s doctors have signed up to the scheme, however the Health Minister has indicated he expects three quarters of practices will have signed up for the scheme by the end of the week.The highest registration rate has been in Donegal, with 94% of GPs registered.From the 1st of July almost 300,000 children will be eligible to visit their doctor free of charge.Minister for Primary Care Kathleen Lynch says youngsters will receive two health checks over the course of the plan………………..Audio Playerhttp://www.highlandradio.com/wp-content/uploads/2015/06/lynchgpcare.mp300:0000:0000:00Use Up/Down Arrow keys to increase or decrease volume. Facebook By admin – June 15, 2015 Google+ Registration begins today for free GP care for under sixes Three factors driving Donegal housing market – Robinson 448 new cases of Covid 19 reported today center_img WhatsApp Help sought in search for missing 27 year old in Letterkenny RELATED ARTICLESMORE FROM AUTHOR Facebook News, Sport and Obituaries on Wednesday May 26th NPHET ‘positive’ on easing restrictions – Donnelly Pinterest Google+ WhatsApp Nine Til Noon Show – Listen back to Wednesday’s Programmelast_img read more

first_imgNews Twitter Previous articleGAA – Mc Kenna Cup Final RefixedNext articleListen back to the first of our Donegal North East debates News Highland 448 new cases of Covid 19 reported today Google+ WhatsApp Facebook By News Highland – February 16, 2011 WhatsApp NPHET ‘positive’ on easing restrictions – Donnelly Twitter Guidelines for reopening of hospitality sector publishedcenter_img Google+ Three factors driving Donegal housing market – Robinson RELATED ARTICLESMORE FROM AUTHOR Pinterest Pinterest Donegal man James McClean has been elected national chairperson of People with Disabilities in Ireland.Mr Mc Clean says his first priority will be to push the incoming government to fully implement the national disability strategy.He says the situation facing many people with a disability is becoming intolerable, but the bottom line must be implementing the strategy………… Help sought in search for missing 27 year old in Letterkenny PwDI Chair calls for implementation of disability strategy Calls for maternity restrictions to be lifted at LUH Facebooklast_img read more