Servicing trends and the state of mortgage forbearance

In this episode of HousingWire Daily, Courtney Thompson, senior vice president of default mortgage at Flagstar Bank, joins the podcast to talk about the biggest mortgage forbearance trends that she is watching and what trends she thinks others should be following.

Sharing a recap of her panel at HousingWire’s Spring Summit on Thursday, Thompson discusses the main themes from her panel titled, “Servicing Challenges in a Pandemic Period.”

She also addresses the idea that servicing has been further behind than the origination market when it comes to technology.

Here’s a preview of the interview with Thompson on the state of mortgage forbearance:

Servicers have to, right now, flip their programs, and meaningfully connect with the majority of their COVID-19 impacted population, which is 8% to 12% of every individual servicing portfolio around the country, to actually have a meaningful conversation with every single borrower about whether or not they want extended protections or whether or not they want to join into the resolution wave.

And so it’s an important time period, particularly because of the metrics. If you look at COVID-19 forbearances at the end of last summer, you know, 40% to 50% of those forbearances had consumers who were still able to make their regular monthly mortgage payment, they weren’t going delinquent.

If you look at the same group of consumers now, we’re down to about 10% that are still making their regular monthly mortgage payment. So we can focus on the population. It’s a smaller population than it was last fall, but it’s a more needy population.

HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.

HousingWire articles related to this episode:

HousingWire Daily

Hosted by the journalists behind the headlines, HousingWire Daily examines the most compelling mortgage, real estate, and fintech articles reported from the HousingWire newsroom.

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