The article outlines five effective communication strategies with borrowers that are key in helping to navigate the financial hardships caused by the coronavirus pandemic. With the help of these techniques, loan servicers and lenders can assist borrowers who are struggling with making their monthly payments.
First, communication should be provided with empathy and support. This can be done by providing clear instruction, an open line of communication, and ensuring that borrowers are aware of the options available to them. Moreover, without giving borrowers a false sense of hope, servicers and lenders should educate them about their options and allow them to make informed decisions.
Second, transparency is essential. Being transparent involves making sure borrowers understand what type of restructured product they will receive and its implications. Servicers and lenders should make sure that they understand the borrower’s financial situation before restructuring a payment plan or offering forbearance.
Third, loan servicers and lenders should assign clear ownership of the process. This can be done by assigning individuals to specific borrowers or dates. When the borrowers have one point of contact, they may have a smoother experience and are more likely to receive timely responses to their inquiries.
Finally, it’s important for servicers and lenders to be prepared for any potential issues or roadblocks. This can be done by designing default process procedures and ensuring that the entire team is informed and educated. With consistent training and an “all hands on deck” approach, servicers and lenders can adapt and be ready to address whatever issues arise.
In conclusion, using the five key strategies outlined in the article, loan servicers and lenders can help borrowers navigate financial hardships. Through the use of empathy, education, transparency, ownership, and preparation, financial institutions can better support their borrowers and successfully manage restructuring payment options.
You can read this full article at: https://www.housingwire.com/articles/opinion-five-keys-to-effective-communication-with-borrowers/(subscription required)
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