Mortgage Servicers on the Wrong End of CARES Act
- Source: dsnews.com
Treliant Takeaway:
Treliant’s Mortgage Operations & Compliance practice area can help ensure that processes and procedures are as streamlined as much as possible to comply with regulatory requirements. This helps ensure that costs are not incurred from inefficiencies adding to the costs already being incurred to meet requirements.
Article Highlights:
- Servicers with borrowers on forbearance plans are bearing the costs of escrow advances and, in some cases, principal and interest advances.
- Servicers are losing the potential interest income from aggregating monthly escrow payments.
“It could force servicers to exhaust their finite capital to provide assistance to borrowers with federally backed loans who do not need it, and thereby impair their capacity to provide assistance to other borrowers who do need it, but whose loans are not backed by federal entities.”