PennyMac Coronavirus Mortgage Forbearance Information

Servicer Contact Options

Phone: (844) 917-3669
Monday – Friday 7 a.m. to 6:00 p.m. PT

Online Portal:  Request Forbearance Online
Forbearance Request: Call (800) 777-4001 and follow the prompts for our automated system.
Website: pennymacusa.com/covid-19


From Servicer Website

What is the difference between a forbearance plan and a payment deferral?

A forbearance provides temporary relief by reducing or suspending your payments for a brief period of time, depending on your individual situation. Toward the end of your forbearance period, we will reevaluate your situation to determine the best program to repay those missed payments.

Payment deferral is an agreement to pay the past due amounts at a different time. This may be an option for you at the end of your forbearance period based on your unique circumstances and loan program. However, it may not be the best solution if you need a more permanent payment reduction or have an extended need for forbearance.

Will there be a lump sum immediately due at the end of my forbearance?
While a lump sum payment is certainly an option, it’s not the only option. Once you’re able to resume making full payments, you can opt for a repayment plan and add extra money to your monthly mortgage payments in order to pay off the amount owed from the forbearance period.

Or, you can look into a loan modification, whereby PennyMac rolls the balance back into the mortgage. No matter which option you choose, assistance programs will allow you to repay the missed payments over time.

Since you and PennyMac don’t know exactly when this particular hardship will end, we don’t know which long-term relief option will best fit your situation. Today, you won’t be expected to know how much you’ll be able to pay when your forbearance plan ends, or when you’ll be ready to resume regular payments.

Rest assured, we’ll work with you toward the end of your plan to determine the best program for your situation. The missed payments during the forbearance plan will not be immediately due after your forbearance plan ends if you are unable to repay the full amount of those missed payments.

If you still aren’t ready to resume making monthly payments at the end of your forbearance plan, you can request an extension of your plan for another three months. Extensions will be available through a maximum 12-month forbearance term upon a showing of continued hardship.

For homeowners who require more permanent payment reductions, loan modification programs are available that may extend the term of your loan and/or reduce your interest rate to lower your payments. Modification programs do require proof of reduced income. All assistance programs will allow you to repay the missed payments over time.

Will there be interest or fees charged for the missed payments?
No additional interest beyond your regular principal and interest payment will accrue, and no fees will be charged for our assistance programs.

Are most banks deferring payments to the end of the loan?
Actually, the majority of banks are not saying they will defer payments to the end of the loan. Most mortgage loans serviced in the U.S. are part of programs sponsored or insured by the federal government. These include loans owned by Fannie Mae and Freddie Mac, and loans insured or guaranteed by the FHA, VA or USDA.

Together, these loans make up more than two-thirds of all mortgage loans in the U.S. today. These government-related agencies do have programs that allow missed payments from forbearance plans to be moved “to the end” of the loan; however, they involve either a new note and second lien against the property in the amount of the missed payments, or an extension of the maturity date of the loan.

The programs available are unique to each of these agencies and require a review of individual circumstances to determine which program will best resolve the homeowner’s hardship. For example, many customers require more permanent relief through a loan modification to lower their payments, and others have the ability to make payments through a repayment plan.

Some banks own their own loans, which provides them the ability to solely determine how they address missed payments. However, they also service loans for the federal agencies described above and are limited to offering those agencies’ programs on those loans. We encourage you to work with us. You can feel confident we will offer you the best program available to meet your individual needs.

How is my credit reporting impacted by my forbearance plan?
If your account was current prior to January 31, 2020, PennyMac will continue to report your loan as current to the various credit agencies during the forbearance plan. If your account was delinquent prior to January 31, PennyMac will continue to maintain the delinquent status reporting to the credit bureaus during the forbearance plan unless you bring your account current during the plan period, at which time PennyMac will report your account as current.

Can I make full or partial payments during my forbearance plan period?
Yes, you certainly can. Although you’re not required to make full or partial payments during your forbearance plan period, we appreciate any payment you can afford because it will reduce the amount you’ll be required to repay later.

Will I qualify for a refinance if I enter into a forbearance plan?
You will not be able to qualify for a refinance until your plan is completed and your payments are brought fully current.

If you have forbearance questions and would like to speak to a certified housing counselor, please call the Hope Hotline at 995Hope.org

CLICK HERE for 995Hope.org

Please ask questions or report your experience with this servicer below. Your feedback will help other homeowners navigate homeownership preservation options. REMEMBER: Ask for everything in writing to protect yourself against surprises.

43 Comments

  1. Elizabeth on July 2, 2020 at 11:51 pm

    Their website is very vague.
    They acted like they were not aware of the new Fannie Mae COVID-19 Payment deferreral program. Would not could not give me an email to send Fannie Mae materials. Told me to call back “in a few weeks”. Told me a forbearance plan & a payment deferral plan are the same thing.

    So predatory

    • Forbearance Report on July 3, 2020 at 2:53 am

      Elizabeth, we understand your frustration. Did you see this page? https://www.pennymacusa.com/covid-19-faqs#relief-options

      The first step is to determine if your loan is Federally backed. On the home page, you’ll find lookup tools for Fannie Mae and Freddie Mac.

      There are some servicers on this website that have many, many complaints. You’re the first one we’ve seen for PennyMac. That means I would probably give them the benefit of the doubt that they will treat you fairly.

      There’s also a good chance that they’re not ready to start taking people out of forbearance. These companies did not need the number of employees required to handle the over four million homeowners that went into forbearance over a 60 day period because of the CARES Act.

      Now those same homeowners are trying to contact the servicer to negotiate terms of catching up on skipped payments. It’s going to overwhelm some servicers. That’s one of the main reasons we set this site up so that homeowners can help each other navigate any challenges that they may encounter.

      So thank you for your feedback. Please report back if you don’t feel like you’re not being treated fairly?

      • Maya on August 2, 2020 at 11:57 pm

        Perhaps no-one else has left a comment about PennyMac because they are still hopefully waiting for an answer from them, about anything?
        PennyMac has been consistently terrible in communicating with us. They flat out do not answer back when we call them. The matter has been complicated by the fact that both my ex spouse and I share the title, but I have kept the house as per the divorce settlement, and I have been the sole person in charge of taxes, payments, etc. in the past few years. We tried to apply for the interest reduction plan offered to VA loans, and they were unresponsive, took over 90 days to get back to us, and ended up writing the wrong names in the documents when they said they were ready, so we had to return them. It is really hard to not suspect malintent. We are still trying to avoid forbearance, as I dread their retaliatory measures (has anyone READ their fine print on that? It’s terrifying). But I am really at the end of my credit line, with no end in sight.

        • Forbearance Report on August 3, 2020 at 1:53 am

          Thank you for sharing your experience here. We are definitely not making excuses for PennyMac, but servicers were caught as off guard by all of this as everyone else. I think we’re only just now seeing the challenges of millions of homeowners trying to exit forbearance plans.

          VA has released VERY Veteran friendly guidelines, and you DO NOT have to process your IRRRL through PennyMac. If you would like, shoot me an email to scott@findmywayhome.com and let me know what State you’re in. I can introduce you to a VA mortgage expert that I know and trust for a second opinion.

          Hope this helps?

          • Roger & Imelda Dunlap on October 9, 2020 at 1:17 am

            We did the forbearance or deferment for covid19 for 4 months. We were told that the 4 payments would be moved to the end of our loan when we setup. Two days ago we were told that there will 4 years added our loan if do the program. We are now waiting for these documents to come so we can this Foolishness in writing.I hope this is just a misunderstanding because there’s no freakin way they’re add 4 years to my loan over 4 months payments that they contacted us to “help” us during covid19.



          • Forbearance Report on October 9, 2020 at 1:29 am

            I don’t think 4 years will be added to your loan. The only way this would happen is if you refinanced and extended the term in order to lower the payment. If your mortgage is federally backed, and covered under the CARES Act, then you should be able to add the 4 payments as a lien to be paid if you sell or refinance in the future. Please let us know if you’re offered anything other than that?



      • Thomas on February 3, 2021 at 3:39 pm

        When COVID began my wife had her hours cut. I was able to use the cares act to not make payments during this time. My loan is a VA Loan. As soon as My wife was back to full time, I contacted PennyMac to try and see if I could have my missed payments added to the back of the loan. The woman on the phone said “no we do not do that but because your loan is a VA Loan we can do a Loan Modification”. I have finished the trial payments, and started making new payments. The whole time I was making payments my credit report still shows no payments. It says current but with no payments. It says my loan is in Forbearance. I have had my credit turned down by lenders do to this wording on my credit report. I make more money now, and have less debt but cannot qualify for any type of loan because my mortgage reads as in forbearance. I thought the whole point of the cares act was to protect consumers not only from losing their homes, and valuables, but also protecting their credit. What can I do about this? We make almost $100000 a year and cant even get a loan for a $30000 travel trailer, or a garage. We only have one car payment, and some credit cards that are always paid on time. We were in much worse financial health before COVID and my promotion, and we used to get approved for almost every loan. Now we make good money, I have paid a ton of debt off, and cant get approved for anything. Why does my credit report show no payments? If I am making payments during the trial, and after the trial period, and my status is current how can Pennymac show my status as no payments for several months.

        • Forbearance Report on February 3, 2021 at 7:57 pm

          Hi Thomas, this isn’t a VA problem, it’s a loan officer or lender problem. VA guidelines allow you to refinance, and you may need to get documentation from Pennymac showing that your loan is in a repayment status. The loan officer can also order a payment history from Pennymac which will document the payments made. How it is reported on your credit report is not how it is reported by the lender internally. Your loan officer just has to do more work because quite frankly, there is not a clear black and white path to navigating all of this. It’s just too new, and there is far from a consensus on how to handle folks coming out of forbearance.

          If you would like to shoot me an email at scott@findmywayhome.com I can introduce you to someone that I know and trust that is an expert at VA guidelines. We may have to go directly to the VA to get guidance for the underwriter, and you need someone in your corner fighting for you on this.

          THANK YOU for your Service. I hope this helps?

      • Tina Facchini on October 6, 2021 at 1:15 pm

        I am trying to preform the monthy checkin for my forbearance and I cannot find this option.

    • Lisa Davis on May 24, 2021 at 1:09 am

      PennyMac informed me that the VA was the only type of loan that would not allow a deferral and the only option I had was a loan modification. It took them 2 months to mail a trial modification “agreement” to me after I ended my forbearance. (I say “agreement” because I just had to pay their suggested amount to “agree” to the trial modification.) They also refused to put the trial loan modification into my account documents online so that I could access the “terms” in a timely manner of my new payment. One representative told me that they could put them in my account online while another told me they could not. (As it turns out, they will not.) I am also unable to access them if I misplace the original mailed documents. Additionally, not one representative was able to give me the amount of my new payment prior to my receiving the documents. It is obvious that no one knows what is going on right now.

  2. wallace smith on July 10, 2020 at 2:11 pm

    My loan is in forbearance. I understand how this works. But, what about escrow for property taxes and insurance that is also not being collected?

    • Forbearance Report on July 10, 2020 at 3:23 pm

      According to the CARES Act, if your taxes and insurance are included in your mortgage payment now and your servicer pays it when it’s due, they should continue to make those payments. If your payments are not included in your payment now, you would still be responsible for paying your taxes and insurance when they are due. It’s important that you verify this. If your insurance is due (annually) call your insurance company and make sure they were paid. Same with your property taxes. You should be able to determine if they were paid or not.

  3. Travis Baldwin on July 14, 2020 at 5:51 pm

    I have a first time home buyers loan with 0% down, 30 yr., Insurance and taxes in escrow, loan w/PennyMac. It states in the CARES ACT that any federal (Fannie Mae or Freddie mac) loan has the option to add the forbearance period to the end of the loan without refinance or modification. When I called under forbearance to extend my forbearance, they acted like I was filing a false forbearance claim.. you only have to SELF ATTEST to hardship… That is the only qualification.. no documentation, not any proof needed, despite what the loan companies say…anyways, what I am asking is if you all would know if I am a federally backed loan? I believe I am, and that I would qualify, as anyone else would, to add the payments to the end of the loan

    • Forbearance Report on July 14, 2020 at 8:02 pm

      Hi Travis, have you tried the Fannie Mae and Freddie Mac lookup tools?
      Fannie Mae Loan Lookup Tool
      Freddie Mac loan Lookup Tool
      You are not wrong about only needing to self attest to being affected by COVID-19, and you’re not wrong about the COVID-19 payment deferment option.

      If your loan is Fannie Mae or Freddie Mac, payment deferment (put payments on end of loan) is one of the options available. It is likely that will ask if you can pay all skipped payments at once (although you don’t have to), then they will look at paying back the skipped payments over the next 3 to 12 payments, making the monthly payments increase for a period of time until caught up, then finally, you may be offered a payment deferment.

      What I can tell you is that PennyMac does not get a lot of complaints. There are servicers on this site that are dropping the ball in a very big way. Pennymac is not one of them. I hope that means that they are doing a good job of helping consumers exit gracefully from forbearance.

      Hope this helps?

      • Debbie Smith on July 16, 2020 at 1:00 pm

        Our loan is a FHA loan that penny mac services which I am told is federally backed. They are asking for proof of hardship and are almost forcing us into a loan modification or refinance even sent a letter stating they could foreclose. Up until covid not one payment missed, we have now skipped 3 under their relief program. I asked to start payments back up and push the others out to the end of the load and they said it isn’t an option.

        • Forbearance Report on July 16, 2020 at 4:00 pm

          Hi Debbie, I know this doesn’t sound like a great answer, but I would call again and speak to another person at PennyMac. What they are telling you is not consistent with the guidelines offered in the CARES Act, or the guidance that FHA has released since. The “deferment” option that adds your skipped payments to the end of the loan is called an FHA Partial Claim. Ask specifically for that option. Hope this helps?

  4. Madeline Montosa on August 10, 2020 at 2:59 pm

    It is my understanding that if I request the full 180 days on my FHA loan that the lender cannot deny me and only approve 90 days to start. In my case I haven’t been able to move forward because PennyMac will only offer me a shortened term of 90 days.

    • Forbearance Report on August 10, 2020 at 4:12 pm

      The CARES Act states that you must be granted “up to” 180 initially, with the ability to extend and additional 180 days if you are still experiencing financial due to COVID-19 hardship. This is commonly misunderstood and even misstated by congresspeople talking about the CARES Act.

      Here is the actual text from the bill, H.R. 748-210 / Section 4022. Foreclosure Moratorium and Consumer right to Request Forbearance

      (2) DURATION OF FORBEARANCE.—Upon a request by a borrower for forbearance under paragraph (1), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, provided that, at the borrower’s request, either the initial or extended period of forbearance may be shortened

  5. donna Benjamin on August 24, 2020 at 9:52 pm

    Should we take the va administration disaster streamline modification if we intend to buy another house in 5 months? We could afford to pay the missed payments but it would be tight? Will this option ruin our 750 credit scores?

  6. Martin Shak on September 3, 2020 at 1:50 am

    Hi, I have ended my Forbearance Plan, and I am in the middle of the loan modification process. PennyMac has sent me the approval letter under the VA Disaster Streamline Modification, including the instructions of trial payments. Here is my question: Does this type of loan modification hurt my credit?

    • Forbearance Report on September 3, 2020 at 3:19 am

      Hi Martin, under the CARES Act, your VA loan will not report late payments during the forbearance period. Also, the reinstatement is not supposed to affect your credit as long as the scheduled payments are made on-time and your lender does not report any derogatory remarks about the status of your loan.

      • Martin Shak on September 3, 2020 at 3:29 am

        Thanks for replying. I owned a total of 10K on my mortgage during the Forbearance. I do have an option to borrow this money from my parents and pay the amount I owe, so I don’t have to through the loan modification. I heard that doing the loan modification disqualifies me for refinancing in the future or selling my house. Would you recommend to borrow the money and pay the 10K I owe or stick with the loan modification process?

  7. Tam Kinc on September 17, 2020 at 3:20 pm

    My loan is a VA loan through PennyMac. I recently received the modification loan process, make 3 payments on time at the amount set in the letter. I had questions concerning this letter I received about loan payments may go up or down after the 3 payments. I called and was told it won’t go up hundreds of dollars but more likely a few dollars. My husband is concerned that at the end of the 3 payments this will be a refinance and lots of money tacked on the back of the loan. Can you advise if this will be a refinance and if I should be concerned about the amount of money being tacked at the end of the loan?

    • Forbearance Report on September 17, 2020 at 4:16 pm

      Hi Tam, only PennyMac would be able to tell you the terms of the modification. I would be really surprised if that letter doesn’t or the original modification package doesn’t explain the details of what your loan will look like on the other side of the trial period.

      • Tam Kinc on September 17, 2020 at 7:01 pm

        Thank You. The letter doesn’t and the response from PennyMac was once the 3 trial payments are over and all monies are applied I would know more of what my payment would be.

  8. Sandra Otero on October 21, 2020 at 8:10 pm

    My loan is a VA loan through PennyMac. I’m planning on choosing the streamline modification loan process, they said I will be on a trial period and during that time make 3 payments on time and then I will receive my package with the new modified loan terms/rate. If I’m not happy with what they offer can reject the offer, pay lump sum I owe and keep my current term/rate?

    • Forbearance Report on October 21, 2020 at 9:56 pm

      This is a good question, Sandra. You should always have the ability to pay a lump sum and continue to make your payments under your existing loan terms. What you want to be careful of is if you do not like the terms they offer after the trial period, you might owe even more since I assume the trial payments are less than your standard payment before COVID?

      If you are in a position to pay the skipped payments, that’s probably your least expensive option. Interest rates are so low in today’s market that any payment relief they offer you may come in the way of extending the term of the loan. When you do this, you’re extending the interest payments out years as well.

      I hope this helps?

  9. Lawrence on November 16, 2020 at 6:37 pm

    I know this may seem like a foolish question, but I have a FHA with Penny mac.
    I went through the forbearance plan due to hardship because of my wife losing her job due to Covid19.
    It has been three months since i have made a payment.
    Will i be forced to pay that all back at this months end, or will They foreclose because I cant pay the full amount?

    • Forbearance Report on November 16, 2020 at 6:52 pm

      Lawrence, this is not a foolish question at all. You are eligible for forbearance on your FHA loan for up to 360 days according to the CARES Act.

      Your servicer is supposed to call you and discuss your options for reinstating your loan and getting it back into good standing.

      FHA offers an option called a Partial Claim – this puts the “skipped” payments on the end of the loan which will need to be paid back if you sell or refinance the home (or otherwise pay off the loan).

      If your initial forbearance was only 90 days and PennyMac has not contacted you about extending or reinstating your loan, you should follow up with them.

      Do not assume that they know what they are doing.

      Hope this helps?

  10. Norris on December 9, 2020 at 6:33 am

    I currently have an FHA loan through pennymac and am in forbearance at the time. My concern is the deferment to end of loan option being a sure thing or not at the end of my forbearance period for the payments missed. I am reading mixed comments everywhere and have trouble getting a hold of someone at pennymac. Some people say that they mentioned it being up to the third party mortgage lender and others say all FHA loans backed by freddie mac or fannie mae must offer the deferment at end of your loan. Pennymac is supposedly under them but I tried the look up tools for both and my loan is not popping up. Can you please shed some light this way? Very stressful with planning my future accordingly.

    • Forbearance Report on December 9, 2020 at 4:09 pm

      Hi Norris, FHA does have a deferment option, it is called an FHA Partial Claim. There is no requirement that your servicer offer you this option first, so if they ask if you can pay it back all at once, or if you can make payments over time, don’t be surprised. The lender is going to try to do what is best for them and you.

      I have also heard many instances of the servicer simply putting homeowners into the Partial Claim option, which adds the skipped payments to the “end” of the loan as a non-interest bearing loan to be paid off if you sell or refinance in the future.

      Hope this helps?

      • Norris on December 10, 2020 at 3:20 am

        Thanks for the reply. I guess my question now is does every FHA loan qualify for this partial claim option? Or is it still ultimately up to the third party mortgage originator or anything else?

        • Forbearance Report on December 10, 2020 at 3:41 am

          Yes, all FHA loans are eligible for the partial claim option.

          • Brandon Roberts on March 16, 2021 at 10:49 pm

            Apparently, unless you are behind on your mortgage at the time of forbearance. Correct?



  11. Andy on December 23, 2020 at 3:57 pm

    I have been in forbearance on with PennyMac, but have just received the paperwork to submit for the partial claim. I have noticed that my balance has went up each month while in forbearance. I assumed this was interest accumulating. Will my balance change after the partial claim? Does the partial claim basically work as a payment on the first mortgage and move that amount to the 2nd lien?

    Also, how will the partial claim and balance info be reflected on my credit report?

  12. Shawn on March 4, 2021 at 7:44 pm

    Can you tell me what my options are when coming out of a disaster forbearance while in a USDA loan, cna i add to the end or must i do a modification with Penny Mac

    • Brandie on March 23, 2021 at 2:47 pm

      I am also looking for guidance on this question as they are now asking for documentation of my covid hardship after the fact.

  13. Millicent E Jervis on August 29, 2021 at 1:22 am

    I am Millicent Jervis I am still in difficulties paying my mortgage untime so I need to extend my forebarence plan for two more month

  14. CAD on September 28, 2021 at 10:27 pm

    I am about to come out of a Covid-19 forbearance with PennyMac. I am deciding on whether to choose the loan modification, which will extend my loan back to 360 months, or choose to add the missed payments to the end of my loan. We were only in our home 2 years before Covid hit, so extending back out to 30 years isn’t a huge deal to me. My question is, if I want to take advantage of the lower rates and a small portion of the equity that is in my home now, which option to start making payments in will be the best? If I choose the modification, how long, if ever, will it be before I can refinance? Or if I choose to defer to the end, will I have to pay that sum all at once before we refinancing, or could that portion be rolled into the refinancing and I take a portion of the equity to pay that?

    • Mark on October 13, 2021 at 3:13 pm

      Hi CAD, it appears we are in the same situation. Have you heard back yet? I cant get anywhere with PennyMac and have even so far as sending an email to investor relations at PM advising I plan to file a complaint with RESPA. There is also FBI Mortgage Crimes Unit and the Texas Attorney General but I am going to give them a chance to answer my email first. I lost my job due to COVID and It’s truly a shame how they are treating customers who had no choice but to take the forbearance. After all we have made a long term financial commitment to them. I can just imagine how they would treat us if (God forbid) we were in an actual foreclosure type situation.

  15. Mark on October 12, 2021 at 6:22 pm

    I went to the FHA website and under payback option for people ending and coming out of the forbearance. There are five options options for payback of miss payments. The top one listed is called the Advanced Load Modification that is a permanent change in one or more terms of a borrower’s mortgage that provides a minimum of 25% reduction to the borrower’s monthly principle and interest and does not require contacting the borrower. I have asked numerous people at Penny Mac and they all tell me that I don’t qualify for that, My question is why?

  16. Mark on October 13, 2021 at 3:27 pm

    In addition I found this under news section at CFPB website where you may also file a complaint, which I have not done as still waiting on PennyMac to respond. If they do not I will file formal complaint for non compliance here as well in addition to RESPA complaint:

    New rule ensures mortgage servicers provide options to potentially vulnerable borrowers exiting forbearance
    SEP 30, 2021
    SHARE & PRINT
    As of September, approximately 1.6 million borrowers are exiting mortgage forbearance programs. As servicers expand their operations to match the surge of forbearance exits, servicers should remember that not all borrowers are similarly situated. Many borrowers may be vulnerable to a greater risk of harm due to a variety of personal circumstances, including poor health, mental decline, disability, caregiving for a child or loved one, having limited English proficiency, inadequate access to technology, or being a first-time homeowner. The effects of the COVID-19 pandemic may have exacerbated some of these vulnerabilities.

    The CFPB’s final rule amending Regulation X to assist mortgage borrowers affected by the COVID-19 emergency became effective on August 31. The final rule establishes temporary procedural safeguards to help ensure that eligible borrowers have a meaningful opportunity to be reviewed for loss mitigation before the servicer can make the first notice or filing required for foreclosure on certain mortgages.

    The CFPB also issued a Compliance Bulletin on April 1, 2021. The Bulletin explained that, consistent with the flexibilities announced in the April 3, 2020 joint statement, the CFPB expected servicers to manage communications with limited English proficiency borrowers while maintaining compliance with applicable laws and to maintain policies and procedures that are reasonably designed to achieve the continuity of contact objectives to ensure that delinquent borrowers receive accurate information about their loss mitigation options.

    In August, the CFPB published a report detailing 16 large mortgage servicers’ COVID-19 pandemic response. That report noted that nearly half of mortgage servicers do not track borrowers’ language preference to assist customer who have limited English proficiency (LEP). The Bureau notes that, where appropriate and consistent with the law, servicers that track consumer language preference may be in a better position to more rapidly respond to the unique needs of these borrowers, such as connecting them to bi-lingual customer service agents or language line services.

    To avoid the risk of harm to borrowers, the CFPB also encourages servicers to enhance their communication capabilities and outreach efforts to educate and assist all borrowers in resolving delinquency and enrolling in widely available assistance and loss mitigation options. The CFPB also encourages servicers to ensure that their compliance management systems include robust measures to identify and mitigate fair lending risk.

    Similarly, one-size-fits-all policies, practices or procedures could unintentionally harm vulnerable consumers. For example, servicers implementing across-the-board customer service call time goals without exceptions may not be taking into account that some borrowers will require more time than others to fully understand their mortgage relief options and communicate with a customer service agent, sometimes in a language other than English. Servicers should consider adjusting internal metrics when customer service agents are communicating with LEP customers or using technology to assist borrowers who may have difficulty hearing or a disability.

    Other resources and guidance issued by the CFPB may assist servicers in meeting their obligations to serve all borrowers, including those with limited English proficiency. For example, on July 2, 2021, the CFPB published a Spanish translation of the Early Intervention Written Notice Model Clauses , which servicers may use. In addition, the CFBP published resources that focused on reverse mortgage borrowers, people with disabilities and Native communities .

    The CFPB continues to educate borrowers facing delinquency about enrolling in widely available assistance and loss mitigation options, including obtaining help from a HUD-approved housing counselor. The CFPB will continue its oversight work through examinations and enforcement, and it will hold servicers accountable for complying with existing regulatory requirements, as well as the amended Mortgage Servicing Rules that took effect August 31, 2021.

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