Mortgage Professional America –
Increase in delinquencies will require more accuracy from mortgage servicers
By Clayton Jarvis
According to data compiled by Mortgage Bankers Association, the total number of loans in forbearance as of April 19 was just shy of seven percent. The high number of homeowners looking for mortgage assistance has raised the alarm of a wave of delinquencies following in the wake of COVID-19. Mortgage servicers who attended a recent roundtable held by MBA and STRATMOR estimated that delinquencies could reach as high as 30 percent.
According to Neil Fraser, director of US operations for Paradatec, servicers who have not completed a thorough auditing of their MSR data have ample reason to fear that wave of delinquent loans: The inaccurate fee calculations that result when a prior servicer’s MSR data doesn’t match up with what’s in the actual loan documents can impact their clients’ long-term finances and expose the servicer to potential compliance infractions.