CFPB Report Analyzes Servicer Data on Borrowers Exiting COVID Forbearance
Industry Update
May 16, 2022
Source: ABA Banking Journal
Just 0.2% of mortgage loans exited COVID-19 forbearance programs with a status of foreclosure, short sale or deed in lieu, according to new metrics published by the CFPB today based on information reported by 16 mortgage servicers that together represent approximately one-third of the residential mortgage market. Most borrowers exiting COVID forbearance exited with a loan modification (27%), the bureau found, while 15.2% exited in a state of delinquency. A little over 6% exited COVID forbearance with a status of current, while 10.2% exited forbearance with their loan paid off and 8.4% had their loan reinstated.
In surveying borrower information, the CFPB found significant variation in how servicers were collecting information on borrowers’ language preference, noting that “the substantial lack of information about borrowers’ language preference and varying data quality made it challenging to make any comparison between servicers.” However, the report did find that “the number of non-[limited English proficiency]borrowers who were delinquent without a loss mitigation option after forbearance declined over time . . . while the number of unknown and LEP borrowers did not reflect the same decrease.”
For full report, please click the source link above.