As the COVID-19 pandemic continues to impact individuals, businesses, and industries all around the world, industry leaders and innovators are working diligently to develop new programs and regulations to help those affected. Mortgage servicers across the country have been experimenting and growing the use of “partial claims” to assist borrowers struggling with the financial implications of the pandemic.
Partial claims have been used in the past to provide forebearance relief to homeowners, but have become increasingly popular in the wake of COVID-19. They allow borrowers to receive lump-sum amounts to assist them in getting past a period of financial strain. This relief is provided by an entity such as a government agency, a bank, or a private company, and is designed to keep a borrower from defaulting on the loan.
While partial claims can be a successful tool for providing borrowers with the assistance they need, there is growing concern that this type of program is not enough to protect those struggling during the pandemic. Industry leaders are now turning their attention to creating successor programs that could provide more significant relief. This could include programs that provide annual payments to borrowers as opposed to lump-sum payments, as well as programs that provide longer-term relief.
As the economy continues to struggle, industry leaders are being proactive in creating programs that can bridge the gap between the relief provided by partial claims and the relief needed to help those impacted by the pandemic. Through the development of more innovative programs, those affected by the potential financial fallout of the COVID-19 pandemic will be able to get the assistance they need.
You can read this full article at: https://www.housingwire.com/articles/industry-leaders-are-working-on-successors-to-covid-19-partial-claims/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
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