A recent report by the Consumer Financial Protection Bureau (CFPB) found that many servicers were initially overwhelmed as the pandemic resulted in millions of people losing their jobs, the Washington Post reported. For example, one large servicer received about 650,000 inquiries to its call center in February 2021. The number increased to 750,000 in March and then dropped to 625,000 in April. The uptick in March tracked the expiration of forbearances for borrowers who enrolled at the beginning of the pandemic and who were probably calling to discuss additional relief, the CFPB said. As of July, more than 1.8 million borrowers were enrolled in active forbearance plans, the CFPB said. The agency has warned mortgage servicers to take proactive steps to assist borrowers, including dedicating resources and staffers to stay in contact with borrowers to ultimately reduce foreclosures and foreclosure-related costs. The CFPB said about 569,000 borrowers are in the early stages of delinquency but aren’t participating in a forbearance plan. “The overall message is that the bureau will be watching closely this fall to see how servicers handle the wave of forbearance exits and take appropriate action as needed,” said Mark McArdle, the CFPB’s assistant director for mortgage markets. Some homeowners will not be able to resume making payments on their mortgages, and that means some foreclosures are unavoidable. But the CFPB is doing what should have been done during the housing crisis. The agency is holding mortgage servicers accountable if they don’t do enough to help people avoid losing their homes.
