With varying types of borrowers that are exiting forbearance, hopefully we can get them into workouts. With the [Federal Housing Administration], for example, we look at the recent changes in the market where we used to have 25% of the principal balance available for a partial claim, now they can go up to 30%.
We’re retraining our call center agents as borrowers are coming off forbearances. We’re going through an effort to have the appropriate conversations about the new workout options that are out there.
FHA came out with some that went into place recently that are streamlined and very similar to the COVID options. The GSEs just came out with a new deferral program that was a little bit more advantageous.
There is a lot of talk about what new tools can we add in the loss mitigation that’s going to help these borrowers? There’s got to be a change in policy for a lot of the various agencies to be able to help or we are going to see some delinquency spikes, as we kind of go forward.
We talk about recession a lot with our clients internally to look at what that would mean and how would we react to it? We might need some type of more generic forbearance.
If we have a recession, we do kind of have a playbook. That playbook all kind of started with the tools we had to deal with disasters like hurricanes, and we’ve evolved further from that with COVID.
Source: nationalmortgagenews.com