CFPB Servicing Report August 2021
- Source: consumerfinance.gov
Treliant Takeaway:
Treliant’s Corporate & Regulatory Compliance professionals stand ready to assist you with all your mortgage needs. We help ensure that you are compliant with both regulatory and operational requirements and best practices. Regardless of your size or regulator, we are here to help.
Report Highlights:
On Tuesday, August 10, 2021, the Consumer Financial Protection Bureau (CFPB, the Bureau) the results of a study they performed in the Spring of 2021 to identify areas of risk in mortgage servicers’ COVID-19 pandemic response. The following key observations should be reviewed by every mortgage servicer who serviced federally-backed mortgage loans from March 2020 through today:
- Call Volume during the Pandemic
- Most servicers managed the high call volume without significant increases in average time to answer, handle times, or abandonment rates
- There were a few outliers who reported higher average time to answer and abandonment rates
- The Bureau found that borrowers with the outlier servicers were at higher risk of receiving assistance
- Forbearance Exits
- Delinquent borrowers exited forbearance at a high rate
- The Bureau found that borrowers exiting forbearance while still delinquent posed a potential risk to vulnerable populations despite the wide availability of loss mitigation options
- Limited English Proficiency (LEP)
- Servicers varied in the collection, categorization, and/or management of information about borrower with limited English proficiency
- The varying approach presents risk to fair lending compliance testing