Brent Chandler: Timely Employment Verification Pivotal to Mortgage and Other Consumer Lending Risk Management

Mortgage bankers and consumer lenders of every stripe have their plates full right now, so some may have missed a significant development or not had the bandwidth to consider its implications. One of America’s primary investors in loans to consumers has lost confidence in automated systems used for verifying loan applicants’ current employment status, accelerating an already-in-motion shift in how borrowers’ ability to repay needs to be assessed.

Industry Briefs

Black Knight, Jacksonville, Fla., said its McDash Flash Forbearance Tracker, as of May 19, reported 4.75 million homeowners – or 9.0% of all mortgages – have entered into COVID-19 mortgage forbearance plans. Active forbearance volumes increased by just 93,000 over the past week, a more than 70% decline from the 325,000 from the first week of May.

MBA: Share of Mortgage Loans in Forbearance Increases to 8.36%

The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey showed loans now in forbearance increased to 8.36% of mortgage servicer volume as of May 17, up from 8.16% the week before. MBA now estimates 4.2 million homeowners are in forbearance plans.

MBA: Share of Mortgage Loans in Forbearance Increases to 8.36%

The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey showed loans now in forbearance increased to 8.36% of mortgage servicer volume as of May 17, up from 8.16% the week before. MBA now estimates 4.2 million homeowners are in forbearance plans.