WASHINGTON—The CFPB has released a report that examines the differences between large and small mortgage servicers.
Of note in the report, smaller servicers – such as credit unions and community banks – have a large role in rural areas and experienced lower delinquencies during the financial crisis, NAFCU noted in its analysis.
The report, "Data Point: Servicer Size in the Mortgage Market," categorized "small servicers" as those servicing 5,000 or fewer loans, while "large servicers" service more than 30,000 loans. It found that smaller servicers service about 14% of all outstanding mortgages and over the past few years, at least 95% of bank and credit union mortgage servicers fell in the "small servicer" category, NAFCU said.
Also noted in the report:
- 74% of borrowers with mortgages at small servicers said having a branch or office nearby was an important factor in how they chose their mortgage lender (vs. 44% at large servicers)
- Small servicers' loans are less likely to be sold to Fannie Mae or Freddie Mac or to be government-backed