The coronavirus pandemic has put mortgage servicers to the test, with record-low rates, skyrocketing unemployment, and rising delinquencies creating a surge in forbearance requests. The pandemic has really amplified the gaps in customer satisfaction, digital experience, and call-Center experience that have been a challenge for mortgage servicers for some time. There are significant operational and financial challenges ahead for servicers’ whose resources are already under severe strain concerning:
- A large number of borrower requests for loan modification/forbearance assistance,
- The number of experienced staff necessary to handle the call volumes and advancing delinquencies
- The sufficiency of servicer technology and tools used for borrower contact and loss mitigation
This is the time servicers must respond to this unique situation by being empathetic to their borrowers, keeping the long-term view in mind. How they support their borrowers now will determine the latter’s loyalty in the future. It is also mandatory for the servicers to honor federal regulations related to forbearance, with minimal documentation, remain liquid for longer time frames, care for customers who need help immediately, and prepare them for prolonged hardship scenarios.
Through the situation, there are three key initiatives that have emerged that have helped servicers alleviate the impact of the pandemic and find somewhat firm ground.
- On-time support to the borrower via self-help options
- Clear and timely communication without any slippages
- The right technology to enable efficient processing
Read more in detail on our recently launched eBook for Servicers, the three key initiatives that have helped them to tackle default servicing challenges.