This week, the Consumer Financial Protection Bureau (CFPB) released a report on servicers’ performance in the second half of 2021. According to the research, services improved their call metrics on average, although some continue to fall behind in aiding borrowers. For example, from May to December 2021, servicers reported an average response time of 2.95 minutes after a borrower’s call reached the servicer’s interactive voice response system.
Overall, servicers stated that the rate of loans exiting forbearance with a foreclosure status was reasonably low from May to December 2021. During the seven months, just 11,386 loans were in foreclosure, with 322 loans exiting through a short sale.
Another issue identified by the CFPB was servicers’ inability to give information regarding borrowers with poor English proficiency. For example, servicers could not give information on the total number of LEP borrowers in their service portfolio, the number of delinquent LEP customers, or their departure status following forbearance.
According to the CFPB, there appears to be a pattern of delinquent LEP borrowers departing forbearance without a loss mitigation alternative, based on the little data available. According to the analysis, this could indicate difficulties in receiving in-language information about how to access loss mitigation measures.
The agency recommended that servicers collect information on a borrower’s preferred language to provide better service to LEP customers. However, it is unclear whether the promise of heightened inspection has resulted in any enforcement actions.
To read more on the CFPB highlights, click here.
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