Mortgage delinquencies have surged more than 8% to a 9-year high as the coronavirus pandemic hits a corner of the mortgage market and the economy as a whole. It also reflects the fact that the number of mortgage servicing staff on hand to manage mortgage default servicing operations has likely been reduced.
“Overall mortgage delinquencies rose a seasonally adjusted 8.22% in the second quarter, according to the MBA. That marked a nine-year high, and a nearly 4% increase from the previous quarter, the largest quarterly jump in the survey’s history.”
This creates challenges for servicers as they prepare to ramp up staffing to deal with the likely influx of homeowners struggling to make mortgage payments in the wake of the COVID-19 outbreak, while also implementing the myriad of government and private sector programs/policies and the right technology in place.
Supercharging Mortgage Servicing with Right People, Process and Technology
With the continued uncertainty surrounding the timing and pace of recovery, servicers must rethink their mortgage default servicing operations and technology to mitigate the risks to their business – now as well as in the foreseeable future.
The short and the long-term impact of rising forbearance, loan modifications, and mortgage defaults can decimate underprepared servicers. Attempts to ramp up large scale loss mitigation initiatives can lead to escalating administrative costs and slower cycle times. Implementing changes to mortgage default servicing processes to ensure compliance with emerging regulatory guidelines will prove equally daunting. Servicers also need to ramp up their engagement with borrowers, many of whom are confused and panicked, during this challenging time.
Servicers will need wide-ranging people, process, and technology to support across areas such as Loss Mitigation, Loan Modification, Customer Service, Title Reports & Valuation, and Claims Processing.
Partnering with a Trusted Vendor can help
At PrivoCorp, we have expert loan servicing teams and a robust platform for servicers that will help manage the forbearance and other default-related requests with a high level of quality and consistency. It will make sure that every request coming in is allocated to the relevant processor, in time, and SLAs for response are defined clearly. Through the system, servicers can also keep borrowers informed of options, and reassure them. The solution itself rides on robust technology and a unique ticketing system that tracks every request through to its logical closure and tracks SLAs, timelines, and flags compliance issues. Yes, our Mailbox Monitoring Platform does that all.
Many of our clients choose to partner with us as we offer end-to-end mortgage servicing support right from Loan Boarding, mortgage loan modification to managing default operations, and loss mitigation.
With its industry-leading servicing profile and customizable process models, PrivoCorp is uniquely positioned to help servicers of all sizes transform and scale their mortgage loan servicing operations. Our robust default mortgage servicing solutions combined with technology-based tools, six-sigma, and ISO-driven processes are designed to reduce costs and deliver exceptional customer experiences. Industry experts with experience across multiple mortgage default servicing platforms ensure rigorous quality and governance through a milestone-based examination of mortgage loan servicing activities. Our hybrid delivery model ensures round the clock support to reduce cycle time and improve customer satisfaction.
At PrivoCorp, we can facilitate a quick and seamless Mailbox Monitoring System to streamline your default processing.
We welcome the opportunity to showcase our capabilities and provide you with focused solutions that fit the needs of your mortgage default servicing operations.