PREPARING THE TRANSITION OF MORTGAGE FORBEARANCE PLANS

Are you prepared for the transition of mortgage forbearance plans to permanent solutions?

Uncertainty and increased volumes

Just over 3.8 million customers have requested forbearance on mortgages, representing 7.5% of outstanding mortgages. These plans will provide needed relief for customers for up to 12 months, at which point each will need to transition to a permanent plan. While the initiation of a forbearance is a standard part of mortgage servicing, the conversion of these plans to permanent solutions – deferrals, reinstatements, repayment plans – is likely to require a significant amount of effort, especially around the collection of documentation and system maintenance. Many servicers have adjusted their loss mitigation models since the 2008 crisis and have yet to test them at the volumes that are projected in the coming months. Finally, the GSE and FHA are likely to continue to evaluate the economic impacts of the current environment and issue new guidance that will require additional preparation and operational change.

Preparing your operations

We have developed a proprietary diagnostic and remediation methodology to evaluate your operational readiness and assist with the implementation of needed enhancements or adjustments. Our diagnostic and remediation methodology include:

▪  Evaluation of product and portfolio mix
▪  Review and adjustment of operating model
▪  Evaluation and adjustment of capacity models
▪  Workforce readiness

These four components cover the key aspects of people, process, and technology with the appropriate lens applied for your organization and delivery model.

We provide clear, actionable advice and implementation assistance providing you with a platform appropriately scaled to the environment.

A new approach

Our team brings a proprietary methodology, based upon deep expertise in the mortgage servicing business, that allows for a rapid assessment of critical areas and development of actionable initiatives, all delivered within a digital collaboration environment aligned to the needs of the current remote work environment.

With the establishment of an action plan and roadmap, we guide your team through each stage of the change process, leveraging leading digital program management tools that provide your teams with a clear plan and progress transparency.

Getting started is easy, as we have prepared a clear communication package to educate your team on the approach, what to expect, and a set of standard templates to gather critical data.

The initial diagnostic typically requires 4-6 weeks depending upon the complexity of your operating model and portfolio.