WASHINGTON–Many homeowners are struggling with making monthly mortgage payments after exiting hardship forbearances resulting from COVID-19, according to a new report from the Consumer Financial Protection Bureau (CFPB) that cautions a wave of homeowners who need assistance is on its way.
The report is based on data from 16 large mortgage servicers between May and December 2021 across many types of loans, including VA, FHA, GSE, PLS or portfolio, across many locations in the U.S. to give the CFPB a better understanding of how servicers are handling all areas.
"While many mortgage servicers are successfully assisting borrowers to avoid foreclosure, today's report highlights that some servicers are lagging their peers and are less well-equipped to assist borrowers who have exited pandemic housing protections," CFPB Director Rohit Chopra said in a statement. "We will be closely monitoring mortgage servicer performance to ensure that they are meeting their obligations under the law."
By the end of 2021, 330,000 borrowers’ mortgage loans were delinquent and no longer in forbearance. These homeowners had no loss mitigation in place, the CFPB said.
Can’t Get an Answer
According to the report, one of the challenges many homeowners cited in the CFPB's data was an inability to reach their mortgage servicer’s call center or get a timely response.
"Mortgage servicer call centers are vital links between the homeowner and servicer that answer homeowners’ questions and provide them with information to make important decisions about their loans," the CFPB stated. "The extent of these challenges varied significantly among servicers."
Call metrics showed average hold times of more than 10 minutes and that call abandonment exceeded 30% for some mortgage servicers, the CFPB report said. Many metrics also indicated that borrowers have difficulty getting a live contact on the phone to discuss their mortgage questions.
The Bureau continues to caution a surge of homeowners who need assistance is likely on its way.
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