CFPB mortgage metric report - COVID 19 responses

The CFPB yesterday announced its second mortgage metrics report providing the CFPB’s observations of data obtained from 16 large mortgage servicers to identify areas of risk in the servicers’ COVID-19 pandemic response. The report addresses similar topics covered in the first report (which covered the period from December 2020 through April 2021), including call center data, COVID-19 hardship forbearance exits, delinquency, and borrower profiles for the period May through December 2021.

In summary, the CFPB's key observations are:

• Call center hold time variability. Some servicers were outliers in the reported call metrics data, including relatively high average hold times exceeding ten minutes and call abandonment rates exceeding 30%. Borrowers may be at higher risk of obtaining untimely assistance from these servicers.
• Delinquency and exits from forbearance. The number and rate of delinquent exits from COVID-19 hardship forbearances increased during the reporting period. Overall, 15% of loans exited forbearance in a delinquent status, with no loss mitigation in place, with some servicers reporting significantly higher figures. While servicers have made progress in working through these delinquent loans, large numbers of borrowers – over 330,000 at the 16 servicers – remained delinquent as of the end of 2021. These borrowers continue to face a risk of harm, underscoring the importance of prioritizing borrower outreach and transitions into loss mitigation solutions and the related regulatory requirements.
• Servicer data challenges. Some servicers did not track, or were otherwise unable to provide, data for key metrics, such as the amount of time borrowers spend on Interactive Voice Response (IVR) systems before connecting to the queue to speak with a live call center agent. Some servicers also reported inconsistent data. These issues raise questions about the servicers’ ability to track and to report high-quality data and to monitor their responsiveness and compliance.
• Borrower demographics. The collection, categorization, and maintenance of information about borrowers’ race, ethnicity and language preference varied widely among servicers in clarity and completeness. The significant variances in the level of detail and amount of available information did not allow for comparisons across servicers.
• Borrowers with Limited English Proficiency (LEP borrowers). The number of LEP borrowers whose loans were delinquent without a loss mitigation option after exiting forbearance increased between October and December 2021, while the number of nonLEP borrowers who were delinquent without a loss mitigation option after forbearance decreased during the same period.