The Consumer Financial Protection Bureau (CFPB) published a report detailing 16 large mortgage servicers’ COVID-19 pandemic response, including call handling and loan delinquency rates.
The CFPB is monitoring key data metrics, including:
– Call metrics including Average Speed to Answer (ASA) and Abandonment Rates (AR).
– Pandemic forbearance exit metrics to determine the support provided to homeowners transitioning out of COVID-19 hardship forbearance programs.
– Delinquency metrics to identify, variation of homeowner delinquency rates among servicers.
– Borrower profile metrics to determine whether and how servicers track borrowers’ race and limited English proficiency (LEP) status.
– Pandemic assistance enrollment metrics to understand the types of assistance programs offered to homeowners and whether homeowner applications to those programs were accepted or rejected.
– Many servicers managed to handle high call volume with an average hold time below three minutes while others reported keeping callers waiting for as long as 26 minutes.
– Most servicers reported abandonment rates of less than 5% during the reporting period, while others exceeded 20% and one peaked at 34%.
– For federally backed loans, three servicers had relatively higher delinquent exit rates for one or more serviced portfolios—consistently exceeding 50%.
– Overall delinquency rates ranged from about 1% to 26% for both federally backed and private loans.
– Nearly half of servicers in the report stated that they did not collect or maintain information about borrowers’ LEP status.
“Many emergency mortgage protections are winding down, and servicers have had ample time to prepare for the millions of distressed homeowners who need their assistance,” said CFPB Acting Director Dave Uejio. “Today’s report should inform servicers’ own data reviews as they determine whether they are doing enough for borrowers. Servicers who find themselves at the bottom of the pack should immediately take corrective steps. The CFPB will hold accountable those servicers who cause harm to homeowners and families.”
Read the full Mortgage Servicing Metrics report.